9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1959 (11) TMI 40 - HC - VAT and Sales TaxEXEMPTION SALE IN THE COURSE OF IMPORT SALE OF IMPORTED MILK POWDER ASSESSEE TAKING DELIVERY OF DOCUMENTS OF TITLE AFTER PAYING TO BANK CLEARING AGENT DELIVERING GOODS TO BUYERS WHO PRODUCE DELIVERY ORDERS ISSUED BY ASSESSEE WHETHER SALE BY ASSESSEE TO BUYERS A SALE IN THE COURSE OF IMPORT.
Issues:
1. Dispute over the liability of turnover to sales tax involving two items. 2. Whether the turnover from sales of imported milk powder and sales effected out of stock held by the assessee are liable to sales tax. Analysis: The judgment delivered by the Madras High Court involved a dispute regarding the liability of turnover to sales tax, specifically concerning two items. The Tribunal had held that both items were subject to sales tax, a decision challenged by the assessee through a petition under section 12-B of the Sales Tax Act. The first item, amounting to Rs. 3,19,503, represented the turnover from sales of imported milk powder. The Tribunal examined the course of dealings, where the appellant was instructed by a principal firm in Calcutta to handle the delivery of documents of title. The Tribunal found that the sales took place after the goods had crossed the customs frontier and were cleared by the assessee's clearing agent in Madras. The Court rejected the argument that the sales were of specific goods falling under section 20 of the Sale of Goods Act, emphasizing that the buyers obtained title to the goods only upon delivery, as the goods were unascertained and unappropriated until that point. Consequently, the Court upheld the Tribunal's decision that these sales were taxable. Moving on to the second item, amounting to Rs. 28,749-12-0, the turnover was from sales effected out of stock held by the assessee in Madras. The Tribunal correctly determined that the sales occurred in Madras, making the assessee the dealer in relation to those sales. The Court concurred with the Tribunal's finding that this turnover was indeed liable to sales tax. In conclusion, the Court dismissed the petition challenging the Tribunal's decision, upholding the liability of both items to sales tax. The assessee's argument that the sales were of specific goods under the Sale of Goods Act was refuted, and the Court affirmed that the buyers only acquired title upon delivery, making the sales taxable. The judgment highlights the importance of the point of delivery in determining the liability to sales tax, especially in cases involving unascertained goods.
|
