1969 (2) TMI 161

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..... n pressed before us is that the syndicate and its members or shareholders happened to be one entity. Thus there could be no sale by one entity to itself. This point does not appear to have been agitated before the departmental authorities. Moreover the facts as they appear in the various orders are altogether meagre about the constitution of the syndicate. It is not even clear whether it got itsel .....

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..... elivered by GROVER, J.- This is an appeal by special leave from the judgment of the Allahabad High Court in a reference made under section 11 of the U.P. Sales Tax Act, 1948, hereinafter called the Act. The High Court answered the following question which was referred in the affirmative and against the assessee: "Whether on the facts and in the circumstances of the case, cloth given by the .....

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..... from the importing agency direct to the retailers who had deposited money with the importing agency and who were entitled to obtain the cloth from specified godown or godowns. In 1948 the control was removed. The syndicate thereafter ceased to function. The members then resolved, inter alia, that cloth would be given to the shareholders according to their contribution at retail prices. The goods .....

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..... mbers had charged a profit over and above the price of the cloth in the same manner as any retailer would have been charged. The Judge (Appeals) upheld the order of assessment. The High Court considered the definition of "sale" as given in section 2(h) of the Act and came to the conclusion in view of the following facts that the syndicate had effected sale of cloth. (1) The majority of the trans .....

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..... yndicate. It is not even clear whether it got itself registered under the Indian Companies Act, 1913. In the absence of proper facts which could be established before the departmental authorities by the assessee the contention that the syndicate and its members constituted one entity cannot be entertained at this stage. On the findings on which the High Court based its conclusion it is not possibl .....

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