RAMCHANDRA RAMPRATAP Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THE question that arises in this reference under Section 44 (1) of the Madhya Pradesh General Sales Tax Act, 1958, is whether, in the facts and circumstances of the case, the sales amounting to Rs. 2,74,965. 77 were inter-State or intra-State sales.

(2.) THE facts stated by the Tribunal are these: The assessee, Messrs Ramchandra Rampratap, Satna, is a registered dealer, dealing in foodgrains and oil-seeds. During the financial year 1959-60, the assessee claimed that its sales of oil-seeds to a Nagpur merchant worth Rs. 2,74,965. 77 were sales in the course of inter-State trade or commerce and, therefore, not taxable under Section 18 (4) of the Madhya Pradesh General Sales Tax Act. The nature of these transactions was that the Nagpur buyer gave to the assessee a standing instruction for the purchase and supply of the goods to him. Pursuant thereto, the assessee purchased the goods in question appropriating them to the account of the Nagpur purchaser debiting him with the purchase price, adhat etc. Intimation of the purchases were in due course sent by it to the Nagpur merchant and on receipt of instructions from him, it sent the goods to parties outside the State. Such despatch instructions were received either on phone or by letters or telegrams. Both the revenue as well as the Tribunal held against the assessee.

(3.) BY an earlier order dated 15th November, 1967, this court has made a direction in terms of Section 44 (4) requiring the Tribunal to submit a further statement of the case. It was observed :