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TMI Blog1977 (3) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... -------------- ROY, J.- The petitioner Messrs. Metal Alloy Company Private Limited (hereinafter referred to as the said company), a company registered under the Companies Act, 1956, obtained this rule against an order of assessment dated 8th September, 1971, made in Case No. 80E/68-69, by the Commercial Tax Officer, Bhawanipur Charge (respondent No. 1), and the appellate order dated 16th February, 1973, made in Appeal Case No. 777 of 1971-72 by the Assistant Commissioner, Commercial Taxes, Calcutta (South) Circle (respondent No. 2). The said company has also challenged the consequential issue of the certificate under sections 4 and 6 of the Public Demands Recovery Act, in Certificate Case No. 15-ST (BH) 72-73 for the year 1967 under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Directorate of Health Services, Madhya Pradesh, as well as the Medical Health and Family Planning Directorate, Rajasthan, rejected some of the stirrup pumps supplied by the said company on the ground that they were not according to the stipulated specifications. Such rejection would be apparent from the letters dated 14th August, 1970, written by the Deputy Director of Medical and Health Services, Rajasthan, and 28th October, 1968, from the Director of Health Services, Madhya Pradesh. The total value of the stirrup pumps so rejected by the authorities concerned was Rs. 88,882.80. In its balance sheet for the year ending 31st December, 1967, the said company duly noted that "sales returns from the Government of Madhya Pradesh and the G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct". The said section is to the following effect: "8A. Determination of turnover.-(1) In determining the turnover of a dealer for the purposes of this Act, the following deductions shall be made from the aggregate of the sale prices, namely: ......... (b) the sale price of all goods returned to the dealer by the purchasers of such goods,- (i) within a period of three months from the date of delivery of the goods, in the case of goods returned before the 14th day of May, 1966; (ii) within a period of six months from the date of delivery of the goods, in the case of goods returned on or after the 14th day of May, 1966: Provided that satisfactory evidence of such return of goods and of refund or adjustment in accounts of the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d jurisdiction. However, before the Certificate Officer also, an application was made for stay of the certificate proceedings till the disposal of the appeal. Such prayer was rejected and on 24th April, 1973, the Certificate Officer concerned issued a warning notice to the said company for payment of the certificate demand. Immediately thereafter the present rule was obtained. Mr. Sen appearing in support of the rule contended that since in the instant case there was a contract for sale of stirrup pumps according to the stipulated specifications and the goods were rejected by the respective Governments as mentioned hereinbefore, on the ground that they were not in accordance with the stipulated specifications, the goods had not passed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le" is a transfer of property in goods for monetary consideration. The words "by one person to another" occurring in the definition clause clearly indicate that in order to constitute or bring about a "sale" there must be two different parties so as to effect a transfer of property in goods from one, "the seller", to the other, "the buyer". There cannot be a sale or supply of goods by the seller to himself. "Turnover" would mean the aggregate of the sale prices received and receivable by the dealer in respect of sale of any goods in the course of inter-State trade or commerce and "sale price", which has been defined in section 2(h) of the said Central Act, means the amount payable to a dealer as consideration of the sale of any goods, less ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deducted from the category of sale price, since such sales, on return of the goods, are ineffectual but clause (b) of section 8A(1) prescribed a time-limit for returning the goods. The time-limit is: (i) for goods returned before 14th May, 1966, the goods must have been returned within a period of 3 months from the date of delivery of the goods, (ii) for goods returned on or after 14th May, 1966, the goods must have been returned within a period of 6 months from the date of the delivery of the goods. The deduction under section 8A(1)(b) is allowable only on production of satisfactory evidence by the selling dealer of the return of such goods and the refund (in "cash", "cheque" or by adjustment) of the purchase price. The onus of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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