BAYYANA BHIMAYYA Vs. GOVERNMENT OF ANDHRA PRADESH
LAWS(SC)-1960-12-5
SUPREME COURT OF INDIA (FROM: ANDHRA PRADESH)
Decided on December 14,1960

BAYYANA BHIMAYYA Appellant
VERSUS
GOVERNMENT OF ANDHRA PRADESH Respondents





Cited Judgements :-

STATE OF GUJARAT VS. HARIDAS MULJI THAKKER [LAWS(GJH)-1991-6-25] [REFERRED TO]
NANALAL M VARMA AND CO P LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1968-6-31] [REFERRED TO]
BUDGE BUDGE INVESTMENT CO LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1968-6-33] [REFERRED TO]
BANK OF BARODA VS. OFFICIAL RECEIVER [LAWS(KAR)-1977-2-9] [REFERRED TO]
PATRAM SITARAM OF MORENA VS. COMMISSIONER OF SALES TAX [LAWS(MPH)-1971-7-15] [REFERRED TO]
SARASWATHA CORPORATION PRIVATE LTD VS. STATE OF KERALA [LAWS(KER)-1962-7-24] [REFERRED TO]
GOMRAJ FATEHCHAND VS. COMMISSIONER OF INCOME TAX [LAWS(MAD)-1973-9-3] [REFERRED TO]
DEPUTY COMMISSIONER OF AGRICULTURAL INCOME-TAX AND SALES TAX ERNAKULAM VS. ALWAYE AGENCIES [LAWS(KER)-1974-1-18] [REFERRED TO]
MUNNA VS. STATE OF MADHYA PRADESH [LAWS(MPH)-2002-5-44] [REFERRED TO]
STATE OF KARNATAKA VS. A AND G PROJECTS AND TECHNOLOGIES LTD [LAWS(KAR)-2007-8-65] [REFERRED TO]
NARANG HOTELS AND RESORTS PVT LTD VS. STATE OF MAHARASHTRA [LAWS(BOM)-2003-10-18] [REFERRED TO]
KARAM CHAND THAPPER AND BROS COAL SALES VS. SALES TAX OFFICER CITY CIRCLE A JAIPUR [LAWS(RAJ)-1961-4-28] [REFERRED TO]
GULJAG INDUSTRIES LIMITED VS. STATE OF RAJASTHAN [LAWS(RAJ)-2002-8-24] [REFERRED TO]
MESSRS. SARASWAT CORPORATION (P) LTD. VS. STATE OF KERALA [LAWS(KER)-1962-7-32] [REFERRED TO]
STATE OF ANDHRA PRADESH VS. KOLLA SREE RAMAMURTHY [LAWS(SC)-1962-4-21] [REFERRED]
RAGHUNATH PRASAD PODDAR VS. COMMISSIONER OF INCOME TAX CALCUTTA [LAWS(SC)-1973-4-29] [RELIED ON]
DAVENPORT AND COMPANY PRIVATE LIMITED VS. COMMISSIONER OF INCOME TAX WEST BENGAL 11 [LAWS(SC)-1975-7-10] [DISTINGUISHED]
JUGGILAL KAMLAPAT VS. PRATAPMAL RAMESHWAR [LAWS(SC)-1977-11-28] [DISTINGUISHED]
VIRBALABEN GIRISHBHAI TRIVEDI VS. STATE OF GUJARAT [LAWS(GJH)-2009-12-99] [REFERRED TO]
ESSAR STEEL LIMITED VS. SUPERINTENDENT OF STAMPS [LAWS(GJH)-2010-2-172] [REFERRED TO]
BHAGWAN MOTOR COMPANY VS. THE GOVERNMENT OF MADRAS REPRESENTED BY THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES [LAWS(MAD)-1973-7-56] [REFERRED TO]


JUDGEMENT

- (1.)These are two appeals on certificates granted by the High Court of Andhra Pradesh against a common judgment in a sales tax revision filed by the appellants in the High Court.
(2.)The facts are as follows : In the year 1952-53, for which the assessment of sales tax was in question, the appellants dealt in gunnies, and purchased them from two mills in Vishakapatnam District and in respect of which they issued delivery orders to third parties, with whom they had entered into separate transactions. The procedure followed by the appellants was this : They first entered into contracts with the Mills agreeing to purchase gunnies at a certain rate for future delivery. Exhibit A-1 is a specimen of such contracts. The appellants also entered into agreements with the Mills, by which the Mills agreed to deliver the goods to third parties if requested by the appellants. The Mills, however, did not accept the third parties as contracting parties but only as agents of the appellants. Exhibits A-2 and A-2(a) are specimen agreements of this kind. Before the date of delivery, the appellants entered into agreements with third parties, by which they charged something extra from the third parties and handed over to them the delivery orders, which were known as kutcha delivery orders. Exhibits A-3 and A-4 are specimens of the agreement and the delivery orders respectively. The Mills used to deliver the goods against the kutcha delivery orders along with an invoice and a bill, of which Exs. A-6 and A-7 are specimens respectively, and collected the sales tax from the third parties. The tax authorities, however, treated the transaction between the appellants and third parties as a fresh sale, and sought to levy sales tax on it again, which, the appellants, contended, was not demandable, as there was no second sale.
(3.)The appellants failed in their contentions before the Deputy Commercial Tax Officer, Guntur, and their appeals to the Deputy Commissioner of Commercial Taxes, Guntur and the Andhra Sales Tax Appellate Tribunal, Guntur, were unsuccessful. The appellants then went up in revision to the High Court under the Madras General Sales Tax Act, 1939 (as amended by Madras Act No. 6 of 1951), but were again unsuccessful. The High Court, however, granted certificates, on which these appeals have been filed.
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