1957 (8) TMI 22

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..... d is governed by the Government of India Act, 1935. The question involves the application of Explanation (II) to section 2(g) of the Sales Tax Act, 1947. The facts of the case are as follows. 2.. The assessee employs pucca adatiyas including Ramdas Manohardas, Khadakpore, for the purpose of arranging sales of linseed and other oilseeds and food-grains which he despatches from Jabalpur to Khadakpore and other places outside the State. During the assessment year he sent various consignments to the pucca adatiya which were disposed of by the adatiya. The Board of Revenue in its statement of the case has given one typical example of how the transactions go through. In that example a consignment of 388 bags of sarso was despatched on 18th Dece .....

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..... nd has been brought out by Chandavarkar, J., in the leading case reported in Kanji Devji v. Bhagvandas Narotamdas(2). A pucca adatiya (1) [1952] 3 S.T.C. 263. (2) 7 Bom. L.R. 57. can adopt the transaction to himself if he so cares, but ordinarily he finds a customer for the goods, though the two principals are not disclosed to each other, and the transaction is between the adatiya and the two principals on either end. When goods are sent to a pucca adatiya, there may be no sale to him. The sale to him comes into existence only if he appropriates the transaction for himself. If the pucca adatiya finds a customer there are no two sales, namely, one to the pucca adatiya and another to the buying principal. There is only one sale and that is to .....

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..... Act would not be made applicable. 5.. We accordingly hold that the answer to the question posed by the President, Board of Revenue, is that under the facts and circumstances of the case the despatches of oilseeds of the value of Rs. 2,64,366 made by the applicant to places outside the Province during the assessment period 13th November, 1947, to 31st October, 1948, did not constitute sales taxable under the Sales Tax Act. We may add that we had the facts only of the one transaction before us, and what we say applies to such facts as are disclosed, and not to any other transaction in which there may be distinguishing features. The costs of this reference shall be borne by the non-applicant. Counsel's fee Rs. 50. Reference answered accordin .....

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