Report No. 30

34. Cement Marketing case.- In the second case also, the contract of sale had been entered into between the buyer and the Cement Marketing Co. Ltd., who were described as the Sales Managers of the Associated Cement Co. Ltd. The buyer entered into a contract with the Cement Marketing Co. who sent the authorisation and the buyer's order to the factory named in the authorisation and the factory then supplied the requisite goods to the buyer. On a consideration of all the relevant facts of the case, the Supreme Court held that the Cement Marketing Co. was only a Sales Manager of the Associated Cement Co. Ltd. who were the real sellers, and observed (AIR p. 984, para. 3):-

"It was not the volition of the first appellant (Cement Marketing Co.) to supply to the purchaser the goods from any of the factories of the second appellant (Associated Cement Co.). The factories were nominated by the Government by authorisation which formed the basis of the contract between the buyer and the seller. Applying these tests to the facts of the present case, we are of the opinion that the sales were in the nature of inter-State sales and were exempt from sales tax.".