Dipak Kumar Sen, J. - (1.) This reference arises out of the assessment of Satcowrie Dass & Co., a dealer, to sales tax for the four quarters ended on 27th April, 1960. The dispute concerns transaction in goods of the Union Carbide (India) Ltd. The Commercial Tax Officer concerned found that the Union Carbide (India) Ltd. despatched its goods direct to customers outside West Bengal. The bills drawn on such customers and the relevant railway receipts were forwarded to the dealer, who paid the amounts of the bills to the Union Carbide (India) Ltd. The railway receipts were thereafter endorsed by the dealer and the copies of bills of the Union Carbide (India) Ltd. with similar bills made out by the dealer were issued on the customers. Payments were received by the dealer through bank. The relevant C forms, if any, were sent by such customers direct to the Union Carbide (India) Ltd. The Commercial Tax Officer also noted that the auditors of the dealer treated such transactions to be sales effected by the dealer, that they were shown as such in the dealer's accounts and that there was no written agreement between the Union Carbide (India) Ltd, and the dealer.
(2.) It was contended on behalf of the dealer that it acted only as a guarantor for payment of goods sold by the Union Carbide (India) Ltd. and in support thereof produced a letter of the Union Carbide (India) Ltd. The Commercial Tax Officer rejected such contention as he found that the payments were first made by the dealer for the goods and that, before effecting despatches to parties outside the State, the prior approval of the dealer was obtained by the Union Carbide (India) Ltd. Accordingly, he held that the dealer was not a mere guarantor. The Commercial Tax Officer came to the conclusion that the transactions represented inter-State sales within the meaning of Section 3(b) of the Central Sales Tax Act, 1956, and as such exigible to sales tax.
(3.) Being aggrieved, the dealer preferred an appeal against the said order under Section 9 of the said Act, read with Section 20(1) of the Bengal Finance (Sales Tax) Act, 1941.;