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TMI Blog1991 (6) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... e same taluka. In order to achieve this object the society used to pool the unginned cotton produced by the farmer members and by the farmer members of other member co-operative societies. After ginning the cotton, the cotton and cotton-seeds are sold. Sometimes oil is extracted from the cotton-seeds and thereafter the oil is sold. The society carries on this activity for and on behalf of the members of the society. The society passed appropriate resolution for carrying on such activity on behalf of other member societies also located outside the Anand Taluka. In this connection, the society passed resolution and suitably amended bye-laws. Societies located outside Anand taluka are called "nominal members". While registering the society, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court for its opinion. The question and our answer are as follows: Question Answer Whether, on the facts and in the circumstances In affirmative, in of the case, the Tribunal was correct in law in holding favour of the that the transactions of supplying the relevant goods dealer opponentto Anand Taluka Co-operative Cottonseeds Ginning society and and Pressing Society Ltd., by its members, including against the "nominal members", which co-operative society Revenue. thereafter carried out ginning of the unginned cotton, the crushing of cotton-seeds and the sale of the resultant oil, did not constitute transactions of sale and purchase between the co-operative society and those members, including "nominal members"? 5.. The Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed the goods entrusted to it by its members." 6.. In the instant case, the Tribunal has followed the spirit underlying the aforesaid observations. The Tribunal has compared the byelaws of the dealer-opponent society, with the bye-laws of M/s. Khedut Sahakari Ginning and Pressing Society Ltd. which were under consideration before the Supreme Court. We ourselves have also examined the relevant bye-laws. The bye-laws in general and particularly with regard to the following important subjects are almost similar. The important subjects may be specifically referred to: 1.. To gin and get gin cotton for members. 2. To make advances of money against goods. 3. To advance amounts to members for raising agricultural produce. 4. For distribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this view of the matter, the natural corollary of the Supreme Court decision would be that the activity carried on by the dealer-opponent society is like that of M/s. Khedut Sahakari Ginning and Pressing Society Ltd. which has been examined and considered by the Supreme Court. Be it noted that it is not the case of the Revenue that the dealer-opponent society is not carrying on its activities in accordance with its bye-laws. Therefore, it has got to be inferred that the transactions between the dealer-opponent society and its members including the nominal members are in accordance with the bye-laws. Hence the terms of the agreement between the members and the society have to be inferred as provided in the bye-laws. In view of this positio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Full Bench decision of this High Court in the case of Sahakari Khand Udyog Mandali Ltd. v. State of Gujarat reported in [1981] 47 STC 212, should have been followed by the Tribunal. In that case, the Full Bench of this Court distinguished the decision of the Supreme Court in the case of Khedut Sahakari Ginning and Pressing Society Ltd. [1972] 29 STC 105; AIR 1972 SC 1786. After examining the bye-laws of the respective sugar co-operative societies and after referring to the decision of the Supreme Court in the case of Rohtas Industries Ltd. v. State of Bihar reported in [1961] 12 STC 615, the Full Bench of this Court laid down the following principles for determining as to whether a particular transaction is sale or not. "1. The test ..... X X X X Extracts X X X X X X X X Extracts X X X X
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