P.C.Borooah, J. - (1.) The Petitioner No. 1 Remington Rand of India Ltd. (hereinafter referred to as the Company) having their registered and head office at 3, Council House Street, Calcutta, carries on business inter alia in the manufacture and sale of typewriters and typewriter ribbons and other office equipments. The Company has a factory at 493/C, G.T. Road (South), Howrah. Apart from manufacturing typewriter ribbons in their own factory, the Company also purchases typewriter ribbons and other items from other manufacturers and sells the same in the market through their own selling organisations.
(2.) On or about August 17, 1978, M/s. Rainbow Ribbon Industries, (Respondent No. 4) offered the Company for sale various types of ribbons manufactured by them as per their specification, a copy whereof is annexed to the petition, and marked with the letter 'A'. The Company by their letter dated August 29, 1978 a copy of which is annexure 'B' to the petition, informed the respondent No. 4 that their offer of sale of ribbons manufactured as per their specification was acceptable to the Company except that instead of the brand name "Rainbow" the plastic containers should bear the nami of "Remington" on the top lid, the price tag inside the containers should bear the patented brand name of the Company and the plastic containers should be packed in card board boxes bearing the Company's name. This was agreed to by the respondent No. 4. Thereafter the respondent No. 4 manufactured ribbons as per their own specification and sold the same to the Company at a price mutually agreed upon with the brand name of the Company embossed on the plastic containers as well as the price tags put inside as aforesaid.
(3.) After the purchase the Company sent the goods to their various sales depots throughout India to be marketed through their selling organisations. The ribbons-were sold by the Company at a price fixed by them after adding the selling cost and profit on the price at which the Company had purchased the ribbons from the respondent No. 4. The Company has also been assessed on the trading profit earned by them as well as on the sale price of the ribbons by the appropriate sales tax and income-tax authorities.;