- (1.) The Sales Tax tribunal, Bombay, referred under section 23 of the C. P. and Berar Sales Tax Act, 1947, the following question to the High court of Judicature at Bombay : "Whether the transactions in dispute amounted to sales in view of the agreements produced by the applicants at pages 195 to 205 of the Assistant Commissioner's record -
(2.) Following an earlier judgment in Civil Miscellaneous Case No. 305 of 1954-Abdul Rashid Hafiz Din Mohammad v. The State of Bombay the High court answered the question in the affirmative. Messrs Haji DIN ohammad Haji Abdulla-who are hereinafter referred to as the assessees have appealed to this court with certificate of fitness.
(3.) The assessees are bidi merchants at Camped, District Nagpur in former State of Madhya Pradesh. They held at the material time a licence issued by the government of the central Provinces for the manufacture and sale of bidis in and outside the State of Madhya Pradesh. Between 13/11/1947) and November i, 1948, the assessees despatched bidis to merchants at diverse places in India, each merchant executing an agreement in the form of a letter addressed to the assessees, a sample form whereof is set out here below :- (1) You will have to meet my demand of bidis in my area. (2) You will have to give delivery of bidis at Manmad station. (3) I will sell your bidis at the rate fixed by you adding to it the expenses incurred. (4) Money towards goods will be remitted to you as sales are effected or sometimes remittance will be made in advance. (5) After the goods are delivered, I shall be responsible for the damages or risk at my place or in transit. (6) I shall take from you, in lieu of my labour, Rs. 3-3-0 as commission per pitara. (7) You will have the right to increase or reduce the rate of bidis. (8) On the goods remaining in stock when the rate is increased or decreased, necessary adjustment of accounts will be made. (9) If I were to be acting in contravention of these conditions, you will have the right to cancel my agency. You will have right to make arrangements for the sale of your bidis as you think best. ";