9911796707
TMI Blog1961 (6) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... ses relate to 1952-53 and 1953-54 in which years the assessee entered into a contract with the Excise Department of Hyderabad for the collection and supply of the Gulmohva flower to the distilleries aforementioned, at a rate fixed in the contract varying with the grade of the flower to be supplied. According to the terms of the contract, the assessee has to collect the flower, store it in his godowns, and transport the same to the above distilleries at his expense and is to be paid for all these at a particular rate fixed in the schedule for each grade of flower supplied. If the flower is picked from the patta lands, he is bound to pay compensation to the pattadar up to the extent of one fourth of the rate, while that picked from the Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly was mostly influenced in arriving at this conclusion by the consideration that the assessee was not to pay the Government anything for picking the flower from the Government lands which was the Government property and since the transaction is collec- tion and supply of Government flower to the Government, there was no element of sale. Considerable emphasis seems to have been laid on the element of transfer of ownership of the flower to the contractor before even the sale would take place. The following passage typifies the considerations which prevailed with the Tribunal. "Unless the property in the Gulmohva flowers is transferred to the contractor there cannot be in law a sale by the contractor to the Government at a later stage. "T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to the pattadar from whose lands the flower has been picked, and in the latter without any consideration. It is not, however, a contract of supply to the Government of its own property simpliciter. The contractor under the terms of the contract has many obligations; firstly, he must collect the flower, store it, grade it, and then transport it to the Government distilleries and supply certain quantity agreed to under the terms of the contract, irrespective of the fact whether the quantity available in the area was sufficient for the supply of the required quantity. If he fails to supply the flower, or if the flower is destroyed before it is picked, or he fails to supply the required quantity or it is damaged after it is stored, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Mohva flower being used for distillation of alcohol, the picking and transport have to be controlled. It is for this reason that the tenderers are prohibited from dealing with the flower before a tender is accepted and they have bound themselves by the terms of the contract. There are other and similar prohibitory conditions which are in accordance with the provisions of the Abkari Act. Para. 9 of Exhibit A-1 deals with the situation arising from the death of the contractor during the pendency of the contract. The heirs of the deceased are given option to continue the contract and should they choose not to, the Commissioner is authorised to make alternative arrangements to complete or fulfil the contract. It is significant to note th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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