Report No. 30
70. Ben Gorm case.- The last case of the Supreme Court to which I may refer in this connection is Ben Gorm Nilgiri Plantations v. Sales Tax Officer, (1964) 7 SCR 706: AIR 1964 (2) SC 1752. Before considering the observations made by the Supreme Court, I would state the facts which arose in the case. The Appellants-the Assessees-were the manufacturers or producers of tea in the State of Kerala.
They sold their manufactured tea by public auction through their brokers to the agents or intermediaries of foreign principals. Thus, in effect, the sales were made by the Appellants themselves in favour of the agents of foreign buyers and delivery of the goods sold was also given to such agents. It is only thereafter that the agents themselves exported the goods purchased by them to their principals a foreign destinations.