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Report No. 61

1C.5. Case relating to sugarcane-a recent illustration.-

The under-mentioned cases1-12 show the extent of the controversy.

"*of sugarcane, an essential commodity, raised the question whether it fell within the definition of "sale" in the Mysore Sales Tax Act. Answering the question in the affirmative, the Supreme Court emphasised several aspects of the transaction in issue.

First, the Supreme Court pointed out that though there was no choice (in general) as to sale by the grower of sugarcane to the factory13, there was some element of choice, for example, if the factory was closed or the grower did not grow sugarcane. Secondly, though it was true that 95 per cent. of the sugarcane had to be sold, the parties had the choice to increase the quantity above 95 per cent., and the delivery of the sugarcane was to be in such lots or on such dates and at such time as was agreed between the parties.

Thirdly, the goods were unascertained and were to be inspected. All these aspects indicated freedom not only in the formation of the contract, but also in its performance. Even though the parties were determined by the order and the minimum price was fixed and the minimum quantity was also fixed by the order, that did not complete the picture, because the parties made the offer and acceptance, chose the terms of delivery, and could obtain supply of a larger quantity or stipulate for a price higher than the minimum.

1. New India Sugar Mills Ltd. v. Commissioner of Sales Tax, AIR 1963 SC 1207.

2. Indian Steel & Wire Products v. State of Madras, AIR 1968 SC 478.

3. Andhra Sugar Ltd. v. State of Andhra Pradesh, AIR 1968 SC 599.

4. State of Rajasthan v. Karam Chand Thapar & Bros., AIR 1969 SC 343.

5. Chitter Mal Narain Das v. Commissioner of Sales Tax, AIR 1970 SC 2000.

6. Salar Jung Sugar Mills v. State of Mysore, AIR 1972 SC 87.

7. Vishnu Agencies Pvt. Ltd. v. Commercial Tax Officer, Sealdah, 77 CWN 141 (Cal).

8. Commissioner of Sales Tax, Madhya Pradesh v. Mohammad Rasul of Panna, (1970) 26 STC 202 (MP).

9. Commissioner of Sales Tax v. Ram Bilas Ram Gopal, AIR 1970 All 518 (FB).

10. K.N.A. Kotih v. State of Andhra Pradesh, (1971) 27 STC 191 (AP).

11. Excise & Taxation Officer, Hissar v. Jaswant Singh, (1971) 27 STC 582 (P&H).

12. Chigurupali Veeran v. Special C.T.O., (1971) 28 STC 388 (AP)-(Supplies to Government under requisition orders).

* Ed.-Some words seems to be missing.

13. Salarjang Sugar Mills Ltd. v. State of Mysore, (1972) 29 STC 246 (261, 262) (SC).

Certain Problems connected with Powers of the States to Levy a Tax on the Sale of Goods and with the Central Sales Tax Act, 1956 Back

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