Gajendragadkar, C.J. - (1.) This is a group of fifteen appeals by special leave which raise a common question of law. The appellants in these respective appeals are Plantation Companies which grow their own tea in Tea Estates and sell their products. Under the relevant provisions of the Travancore-Cochin General Sales Tax Act 11 of 1125 (hereinafter called the Travancore Act), Sales-tax Officers had assessed the appellants to several amounts of tax in respect of their turn-over for different years. The appellants had urged before the Sales-tax Officers that the transactions in question were not liable to pay sales-tax, but their pleas were rejected and sales-tax was ordered to be imposed in respect of the said transactions. The appellants then challenged the correctness of these orders by preferring appeals before the Sales-Tax Appellate Tribunal. The Tribunal concurred with the view taken by the Sales-tax Officers and confirmed the respective orders of assessment. The appellants then moved the High Court of Kerala in its revisional jurisdiction under s. 15B of the Travancore Act. These revision applications also failed; and that has brought the appellants to this Court by special leave.
(2.) Though the periods and the amounts of turn-over for which sales-tax has been levied against the different appellants are not the same, the principal point which these appeals raise for our decision rests on facts which are common to all the cases, and so, it would be enough if we refer to the facts in respect of one of these appeals. We will accordingly mention the relevant facts in regard to appeals Nos. 1084-1088/1963 in which the appellant is M/s. Ouchterloney Valley Estates Ltd. We may add that the three other appellants in the present group are : The Kil Kotagiri Tea & Coffee Estate Co. Ltd., M/s. Peria Karamali Tea & Produce Co. Ltd.; and M/s. Chembra Peak Estates Ltd. The appellant M/s. Ouchterloney Valley Estates Ltd. produces tea in its own Tea Estates and sells its products. It does not itself carry on the business of buying and selling its products. The Managing Agents of the appellant are M/s. Peirce Leslie & Co. Ltd., Coimbatore. The quantities of tea produced by the appellant were sold by public auction at Fort Cochin; the purchasers paid the consideration at Fort Cochin and obtained from the auctioneers delivery notes requesting the godown keepers at Wellingdon Island to deliver the goods. After the goods are produced, they are sent to the godowns at Wellingdon Island and the sale by public auction is held at Fort Cochin. Fort Cochin was in the State of Madras, whereas Wellingdon Island was in the State of Travancore at the relevant time. The periods for which assessment has been levied against the appellant are 1952-53, 1953-54, 1954-55, 1955-56 and 1956-57.
(3.) The procedure followed for the public auctions in question must now be indicated. This is how the procedure has been summarised in the present proceedings :- "Teas produced in the concerned Estates are graded, weighed and packed in chests in the estates and are subsequently forwarded with garden invoices to the godowns of their Clearing and Forwarding Agents, Messrs. Peirce Leslie & Co. Ltd., Cochin, at Wellingdon Island to be stored there awaiting further instructions. Thereafter, the brokers in Fort Cochin check the weight of the chests, draw samples of their contents and group the chests in lots. They then publish printed catalogues giving the names of the Estate and the godowns, the numbers of the lots, the serial numbers and total number of chests in each lot, the weight of each chest and the total weight of each lot and advertise the sale of such chests with export rights, by public auction, at Fort Cochin on particular date and hour. The sale is conducted, by samples, at Fort Cochin, at the proclaimed date and hour and is confirmed in the name of the highest bidder. The bid may be for an entire lot or for a portion thereof, technically known as brake. The buyer shall be entitled to open the chests bid by him and examine the contents to ascertain the actual state and condition of the tea. Difference or inferiority in quality, description, deterioration, damage and defect in packing will entitle the buyer to submit claims or rejection, or allowance or damage. Such claims must be submitted, after inspection, no doubt, not later than 5 P.M. on the 3rd day before the prompt day (ninth day after date of sale) or in the case of removal before the prompt day, at least 24 hours before such removal. Payment shall be made in cochin on or before prompt day, in cash or by cheque or draft on a Cochin Bank. If the buyer shall fail to pay for the tea or any part thereof on the due date for payment, the goods may be re-sold. Any loss arising on such re-sale shall be borne by the buyer. Delivery shall be taken before 5 P.M. on the 5th day after prompt day. The goods will be at sellers risk to the extent of the sale price only, until 5 P.M. on the 5th day after prompt day or until removal by the buyer, if removed earlier." ;