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TMI Blog1970 (9) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... rt question that arises for consideration in these appeals is whether the supplies of bricks to the named persons in specified quantities against permits issued by the District Food and Supplies Controller, Hissar, and the Block Development Officer, Dabwali, constitute sales and are liable to sales tax. The learned Single judge relying on the decision of the Supreme Court in M/s. New India Sugar Mills Ltd. v. Commissioner, Sales Tax, Bihar[1963] 14 S.T.C. 316 (S.C.); A.I.R. 1963 S.C. 1207., upheld the pleas of the respondents and held that such supplies did not constitute sales and were not liable to assessment. After hearing the learned counsel for the parties, we are of the view that these appeals deserve to be allowed. The learned Sing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of payment, and the direction was that the draft should be sent to the State Bank and it should be drawn on Parry and Company or any other party which had been appointed as stockist importer on behalf of the Madras Government." It was on the basis of the above-mentioned facts that their Lordships of the Supreme Court came to the conclusion that there was no room for mutual assent in those transactions; but in our opinion the facts of the cases in hand are materially different from the facts of that case and the ratio of that decision does not apply to the facts of these appeals. It is common ground that the sales tax which has been assessed related to the supply of bricks which had been made by the respondent-firm to various consumer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, it cannot be held that the dealings in question were controlled at every stage leaving no room for consensus. From the perusal of the provisions of the Control Order all that could be gathered is that the Director or the District Magistrate may fix the base price of the bricks and determine buyers. So far as other matters are concerned, the parties are free to decide their own terms by consent. It was not disputed by Mr. Siri Chand Goyal, learned counsel, that the brick-kiln owner was not bound to supply the bricks immediately on the presentation of the permit and that it was open to him to agree with his customers as to the date on which the bricks were to be supplied and also the place of delivery. It is also an undisputed fact that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at which they were to be supplied, the manner in which they were to be transported and the mode in which the payment of the price was to be made. Their Lordships, after considering the provisions of the Steel Control Order and other material placed before them, held that: "From the material on record it is not possible to accept the contention of Mr. S. R. Banerjee, learned counsel for the appellant that the dealings in question were controlled at every stage, leaving no room for consensus. From the records before us all that could be gathered is that the Controller fixed the base price of the steel products and determined the buyers. In other respects, the parties were free to decide their own terms by consent. As seen from the correspon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs the validity of that doctrine is seriously challenged. Under the existing economic compulsions-all essential goods being in short supplyin a welfare State like ours, social control of many of our economic activities is inevitable. That does not mean that there is no freedom to contract. The concept of freedom of contract has undergone a great deal of change even in those countries where it was considered as one of the basic economic requirements of a democratic life. Full freedom to contract was never there at any time. Law invariably imposed some restrictions on freedom to contract. But due to change in political outlook and as a result of economic compulsions, the freedom to contract is now being confined gradually to narrower and narr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns. The Carriage of Goods by Sea Act, 1924, contains six pages of rules to be incorporated in every contract for "the carriage of goods by sea from any port in Great Britain or Northern Ireland to any other port"; the Hire-Purchase Act, 1938, inserts into hire-purchase contracts a number of terms which the parties are forbidden to exclude; successive Landlord and Tenant Acts from 1927 to 1954 contain provisions expressed to apply "notwithstanding any agreement to the contrary".' It would be incorrect to contend that because law imposes some restrictions on freedom to contract, there is no contract at all. So long as mutual assent is not completely excluded in any dealing, in law it is a contract. On the facts of this case for the reasons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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