LexAMRITSAR SUGAR MILLS CO. LTD. versus COMMISSIONER OF SALES TAX, U.P.
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• ' \ A B c D E F G H AMRITSAR SUGAK MILLS CO. LTD. v. COMMISSIONER OF SALES TAX, U.P. December 13, 1965 (K. SUBBA RAO, J. C. SHAH AND S. M. SIKRI, JJ.] Ultar Pradesh Sales Tax Act, 1948_,,., 5--Contract to communicate later, by buyer, place of delivery-Delivery to another person outside State-If rebate, admissible-Uttar Pradesh Sales Tax (Temporary) Rules, 1948. The aaseHee-sugar mill oold sugar to parties who carried on bmineSI iruide tho State of Uttar Pradesh, but the sugar wu despatched '.o stations outside the State of Uttar Pradesh and delivered to another party in oompliance with the instructions issued by the buyers. Under the con· tract entc~d between the assessee and the buyer, the assCS11te was to deliver the sugar at places to be communicated by the buyer. The assessee-mill claimed rebate on these sal"' under •· 5 of the Uttar Pradesh Sales Tax Act, 1948. The Sales Tax authorities rejected the claim. The High Court held that the rebate was not adm;ssible under s. 5 because the contract did not contain any condition requiring the assC!iee to deliver goods outside Uttar Pradesh and because the despatch instructions were not a part of the contract when it was formed and did not 1et incorporat- ed into it or become a part of it when given. In appeal to this Court. HELD : (i) In the context of s. 5 of the Act the word 'delivery' occurring therein means 'actual delivery'. The object underlying s. S ia to encourage export of goods manufactured in Uttar Pradesh and notified under •· S. The course of trade adopted by the buyers and the asaessee shows that if the word 'delivery' is interpreted to mean 'con.•itructive deli- very' very few 'export sales' would enjoy rebate under s. S. As long as the contract evinces an intention to export and actual delivery is givea to effectuate that intention the object of the legislature to emure that only real 'export •ales' enjoy the rebate would be fulfilled. [53 B-DJ Lord Krishna Sugar Mills v. Commissioner of Sales Tax, U.P. S.T. reference No. 263/ 54 dated March 19, 1963, disapproved. India Coffee and Tea distribuiing Co. Ltd. v. The Stale ul Madras, 10 S.T.C. 359, approved. (ii)The aaleo by the assessee were far actual delivery ouuide Uttar Pradesh. The despatch instructions contemplated by the controct entered into by the aoseiiee, we.re part of the contract. The contract contemplated a deotination in •pite of constructive delivery having been contracted to lie made at the station where the asse,,see-mill was situated. Further the contract wu not to actually deliver at aome place to be choaen oc assented to by the assessee-mill but at any place without reotrictiona. 1be contract required nothing more for completlon than a mention of the plaoc. When the despatch instructions were given, it was not a case of performing the contract but specifying a term of contract. [53 E-GJ 46 St:PREME COt:R T REPORTS (1966] 3 S.C.R. CML APPELLATE JU11.1so1cT10N : Civil Appeal Nos. 86 to 89 A of 1965. Appeals by special leave from the judgment and order, dated Ocotber 17, 1963 of the Allahabad High Court in S. T. Ref. No. 109 of 1956. A. V. Viswanarha Sastri and B. N. Kripal, for the appellant. N. D. Karkhanis and 0. P. Rana, for the respondent. K. K. Jain, for intervener. The Judgment of the Court was delivered by Sikri, J. These four appeals by special leave are directed against the judgment of the Allahabad High Court in a Sales Tax Reference made by the Judge (Revisions), Sales Tax, Uttar Pradesh, Lucknow, on being directed to do so by the High Court under s. 11 of the Uttar Pradesh Sales Tax Act, 1948, hereinafter referred to as the Act. The question referred was as follows : "Whether in law the revising authority was right in holding that the sales in dispute were not for delivery outside Uttar Pradesh and that the applicant Ylas not entitled to a rebate under sec. 5 of the Act." The question was referred in the following circumstances. The appellant, hereinafter referred to as the assessee mills, carries on the business of manufacturing and selling sugar and is registered as a dealer under the provisions of the Act. During the previous year relevant to the Assessment Year 1948-49, the assessee com- pany had sold sugar to panics who carried on business outside Uttar Pradesh and also delivered the same outside Uttar Pradesh. It also sold sugar to parties who carried on business inside Ut
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