- (1.) The Petitioner (a firm) is a registered dealer under the Bengal Finance (Sales Tax) Act, 1941. On June 6, 1945, the Petitioner entered into a contract with the Government of West Bengal, a copy whereof is annexed to the petition and marked as Ex. A. The agreement, on the face of it, is between the Governor of the Province of Bengal of the one part and four persons carrying on business in co-partnership under the name and style of Messrs. S.M. Hanif at 76 Colootola Street, Calcutta. They have been described as "Authorised "Dealer". Clause 3 of the contract runs as follows: The Authorised Dealer shall promptly take all steps necessary for receiving, purchasing, storing and selling all cloth available for civil consumption in Bengal in accordance with the written authority or direction of Government or the Director.
(2.) Clause 5 of the contract also speaks about the authorised dealer purchasing and selling cloth. Clause 6 speaks about the authorised dealer delivering and selling cloth. This paragraph is important and I set it out below: The Authorised Dealer shall consign deliver and sell the cloth only to such person and at such place or places within the Province of Bengal as Government or the Director may direct and not otherwise provided however the Authorised Dealer shall not be required to part with the property in any goods except on prepayment.
(3.) Clause 20(b) is important and the relevant part is set out below: Upon the termination of this agreement Government will take over from, the Authorised Dealer or their Banker or Bankers all stock of unsold cloth. Government will pay the value of the unsold stock at the price at which the Authorised Dealer has taken over (such prices not to exceed the price authorised by law) at the time of purchase by the Authorised Dealer....;