COMMISSIONER OF SALES TAX Vs. NATHANI BROTHERS

JUDGEMENT

(1.) THE Sales Tax Tribunal (Board of Revenue, M. P.) has made this reference under Section 44 of the Madhya Pradesh General Sales Tax Act, 1958, at the instance of the Commissioner of Sales Tax, M. P. The question referred to us is: "whether in the facts and the circumstances of the case the sales amounting to Rs. 34,468. 38 np. were sales made in the course of inter-State trade and commerce or intra-State sales?"

(2.) THE facts of the case are that the assessee firm deals. in manganese ore extracted from a mine in Balaghat District. The assessee was assessed on the sale of manganese worth Rs. 1,04,070/- on the basis that the sales were intra-State sales. The assessee had claimed deductions for the sales worth Rs. 34. 568. 35 np. on the ground that said sales were inter-State sales exempt from the State tax. This claim was negatived by the Sales Tax Authorities; but the Tribunal upheld it.

(3.) THE sales in question were effected in favour of Messrs. Rambahadur Thakur and co. , Nagpur, and Bal Krishna Trading Co; Nagpur, under the contracts dated 17th october 1957 and 8th April 1958 respectively. Under both the contracts the agreement was to sell certain quantity of manganese ore lying at the Katangi railway Station siding at the stated price F. O. R. Katangi. Under both the contracts the assessee was responsible for loading the wagons indented by the purchasers. It is also not disputed by the assessee that the consignees and the consignors of the goods from Katangi were the purchasers in both the cases. Other important conditions relevant to the controversy raised before us are as under: