CEMENT MARKETING CO OF INDIA LIMITED BANGALORE Vs. STATE OF MYSORE
LAWS(KAR)-1966-3-12
HIGH COURT OF KARNATAKA
Decided on March 03,1966

CEMENT MARKETING CO.OF INDIA LIMITED, BANGALORE Appellant
VERSUS
STATE OF MYSORE Respondents

JUDGEMENT

Somnath Iyer, J. - (1.)In this revision petition presented under section 23(1) of the Mysore Sales Tax Act, 1957, the Cement Marketing Company of India, Limited, which is the agent of the State Trading Corporation of India, Limited, for the sale of cement produced by the Associated Cement Companies, Limited, calls in question, the inclusion of a sum of Rs. 1,22,989.90 paise in the taxable turnover for the period between 20th February, 1961, and 31st March, 1961, relating to sales of cement within the State of Mysore. Its inclusion was opposed by the petitioner on the ground that rule 6(5)(f)(ii) of the Mysore Sales Tax Rules, 1957, provides for its exclusion.
(2.)The Associated Cement Companies, Limited, which will be referred to as "the producer" produced the cement which was sold. The State Trading Corporation of India, Limited, which purchased that cement from the producer will be referred to as "the Corporation". The petitioner who sold the cement as the local agent of the Corporation will be referred to as "the dealer".
(3.)It is undisputed that under the Cement Control Order, 1958, promulgated by the Government of India, under the provisions of section 18(G) of the Industries Development and Regulation Act, 1951 (Act 65 of 1951), the producer was under a duty to sell the entire quantity of cement held in stock by it on the date of the commencement of the Order and also the entire quantity of cement which might be produced during a period of three years from the date of the commencement of that Order, only to the Corporation. The Cement Control Order contains provisions about the price at which the producer shall sell the cement to the Corporation. The Schedule to that Order enumerated those prices.


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