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TMI Blog1977 (9) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... question is whether the sale by the assessee to Messrs. Wilson and Co. is a local sale taxable under the Tamil Nadu General Sales Tax Act, 1959, or, what we may term briefly, export sale, which cannot be taxed. The facts are the following, as are seen from the two letters dated 10th February, 1968, written by Wilson and Co. to the assessee. From those letters it is evident that Wilson and Co. was acting on behalf of their overseas principals. The price fixed was for per metric ton and it was payable "f.o.b. Madras", and the other important clause in the offer is about the title to the goods and payment. We shall extract that clause in toto: "The ownership in the goods will pass to us on your handing over the bills of lading by negotiatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts of title to the goods after the goods have crossed the customs frontiers of India. We are informed that the customs frontiers coincide with the territorial waters of India. Here we have to refer to some more facts. The bills of lading for the goods have been taken by the assessee in the name of Wilson and Co. According to the terms of the contract, they had to put the goods on board and had to bear the costs of transport as is clear from the term that the payment is on "f. o. b. Madras" and, accordingly, the bills of lading were taken in the name of Wilson and Co. The further terms referred to by the Appellate Tribunal indicated that Wilson and Co. had opened an account of the assessee and that payments were to be made from that account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the revenue contended that there could not be a transfer of document of title to the goods as the bill of lading had also been taken in the name of Wilson and Co. Therefore, he proceeded on the basis that title had already vested with Wilson and Co. on the bill of lading being obtained. We cannot accept this contention. By merely taking the bill of lading in the name of a person, it cannot be said that the document of title was with that person. The document of title always relates to some movable and immovable property. It is only a document which evidences the title. So, the question in the case would be in whom was the property in the goods represented by the document and who has the right to that property. The document has got no s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k of Messrs. Wilson and Co. (Private) Limited." On the basis of this statement in the invoice, it was contended that the goods were put on board the vessel, and thereafter the risk in the goods passed to Wilson and Co. and the passing of the risk is an important factor which normally and almost invariably indicated, when the property in the goods had passed to a particular person. Assuming there is a presumption that applies with this amount of emphasis, we do not think that we can apply it to a case where the terms of the contract have been reduced to writing, wherein it is specifically mentioned when the property in the goods would pass. It is clear from the particular clause we have extracted and so this statement in the invoice has to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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