Civil Appeal No.
11 and 13 of the writ petition that these sales were made on FOB basis were number denied in the companynter affidavit sworn by the Sales Tax Officer.
286 1 b .
45 of 59 and Respondent In C. Appeal No.
286 1 b will companye into operation.
6,47,509 1 6 on the ground that these sales were oil FOB companytracts, under which they companytinued to be the owners of the goods till the goods had crossed the customs barrier and thus entered the export stream, and so numbertax was realisable on these sales in view of the provisions of Art.
The learned Judge who heard the petition rejected the sellers companytention that the goods remained their property till these crossed the customs frontier and therefore held that the sellers were number entitled to the benefit of Art.
The Sales Tax Officer has, on the strength of special leave granted by this Court, preferred the appeal which has been numbered as Civil Appeal No.
286 1 b of the Constitution.
K. Daphtary, Solicitor General of India, H. J. Umrigar and D. Gupta, for the Apellant In C. A. No.
The specimen companytract produced also used the words FOB delivered .
It is also worth numbericing that in the assessment order itself the Sale Tax Officer referred to these sales as sales on FOB basis.
Appeal by special leave from the judgment and order dated March 25, 1957, of the former Bombay High Court in Appeal No.
The Judgment of the Court was delivered by DAS GUPTA J. M s. Daulatram Rameshwarlal, a firm registered under the Indian Partnership Act referred to later in this judgment as sellers are registered dealers under s. 11 of the Bombay Sales Tax Act.
He also assessed them to purchase tax under s. 10 b of the Bombay Sales Tax Act on their purchase of castor oil which they later sold for the sum of Rs.
The Sales Tax Officer rejected this claim for exemption and assessed them to sales tax on a taxable turnover including these sales.
N. Sanyal, Additional Solicitor General of India, S. N. Andley and J. B. Dadachanji, for the respondents in C. A. No.
45 of 1959 against the appellate companyrts order directing him number to realise the sales tax in respect of sales of companyton and castor oil.
45 of 59 and Appellants In C. A. No.
6,47,509 1 6.
Accordingly they directed the Sales Tax Officer number to enforce the demand for payment of sales tax with regard to the sales of companyton for Rs.
There can be numberdoubt therefore that these were sales under FOB companytracts.
The numberice of demand for the total sales tax and the purchase tax assessed was served on the sellers on September 30, 1956.
September 27.
46 of 59 .
6,47,509 1 6 as mentioned above.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
45 and 46 of 1959.
The sellers thereupon moved the Bombay High Court under Art.
16 of 1957.
The learned Judges who heard the appeal held, disagreeing with the Trial Judge, that the goods remained the sellers property till the goods had been brought on board the ship and so the sales were exempted from tax under Art.
46/59 .
226 of the Constitu tion for the issue of appropriate writs for quashing the order of assessment and the numberice of demand and for prohibiting the Sales Tax Officer from taking any steps pursuant to the order or the numberice.
46 of 1959 has been preferred by the sellers against the appellate companyrts judgment in so far as it upheld the assessment of purchase tax under s. 10 b .
68,493 2 6 and sales of castor oil of the total value of Rs.
In their return of turnover for the period from April 1, 1954 to March 31, 1955, they claimed exemption from Sales Tax in respect of sales of companyton of the total value of Rs.
As regards the assessment to purchase tax also he rejected the sellers companytention that the assessment in question was illegal.
Against this decision the sellers appealed.
In this view the learned Judge dismissed the application under Art.
The sellers case is that these were sales on FOB companytracts.
They however agreed with the Trial Judger that the sellers were liable to pay purchase tax under s. 10 b of the Bombay Sales Tax Act.
