LexCONSOLIDATED COFFEE LTD. AND ANR. ETC. versus COFFEE BOARD, BANGALORE ETC. ETC.
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' . ., ' ~ .r\ 625 CONSOLIDATED COFFEE LTD. AND ANR. ETC. v. COFFEE BOARD, BANGALORE ETC. ETC. April 15, 1980 [V. D. TULZAPURKAR, D. A. DESAI AND A. P. SEN, JJ.] central Sales Tax Act, 1956, as amended by Amending Act 103 of1966, Section 5(3) read with section 5(1) and 6(1), interpretation of-Whether Section 5(3) is beyond. the power of authority of Article 286(2) of the Constitution and therefore ultra vires. Words and Phrases-"the.agreement or order for or in relation to such export," in Section 5(3) of the Central Safes Tax Act, meaning and interpretation of-Whether the agreement referred to means only .the agreement with a foreign buyer or would include any binding or enforceable agree111ent to export even with a local party to implement which penultimate sale should have taken place. Sale-Whether the word 'sale' in the phrase "if such last sale or-purchase takes place after" in section 5(3) of Central Sales Tax Act, 1956, includes"agreement to sell" as defined in Section 4 of the sale of Goods Act 1930. Sale of Goods Act, 1930 Sections 25, 64(2) scope of-Auction sales--When does the property in the Coffee sold at the export auctions conducted hy the Co,,__'ffee Board pass:--Clauses 19, 26 and 31 of the Auction conditions. The Coffee Board, Bangalore is a statutory Corporation incorporated under section 5 of the Coffee Act, I 942, an enactment passed to provide for the develop- ment of the Coffee industry under the Control of the Union. The Coffee Board under various sections of the Coffee Act, exercises complete control-almost mono- polistic-over the coffee trade in exercises of its statutory powers. Export of coffee outside India is particularly controlled under the Act and the Rules by the Coffee Board. Coffee can ,be exported either by the Coffee Board directly to parties outside India or the Coffee Board authorises other exporters to eft'eCt such exports. For effecting exports through other exporters the Coffee Board periodically conducts auctions known as 'export auctions' and it follows a procedure in that behalf. To be able to bid at these auctions, exporters have to get themselves registered with the Board. The Board maintains a 1ist of Registered Exporters and grants to each one of them a permit. which authorises him to take part in the •export auctiQn', The conditions which are imposed by the permit require, inter alia, a security deposit and a standing deposit (which may be in cash or in the form of bank guarantee) from the Registered Exporters; such permit is is liable to be withdrawn or cancelled by the Chief Coffee Marketing Officer, an executive appointed by the Central Government on the Board, at any time if it is found that a permit-holder has sold or has attempted to sell coffee bought by him at the 'export auction' within the internil market without his written permission or if any of the other permit conditions are contravened. The actual 'export auctions' are conducted on the basis of the "the Terms and Conditions of Sale of Coffee in the course of Export'' framed by it and the Registered Exporters partici- pate in such auctions on those terms and conditions. Clause 3 of the "Auction A B c D 1 F G H A. B D E ' G H 626 SUPREME COURT REPORTS [1980] 3 s.c.R. Conditions" declares that all auctions and sales made thereat are subject to (i) the Auction conditions, (ii) the Permit conditions and (iii) such other rules or con- ditions as may be prescribed by the Chief Coffee Marketing Officer. Under Cl. 4 only dealers who have registered themsev1es as Exporters of coffee with the Coffee Board and who hold a permit from the Chief Coffee Marketing Officer in that be- half are permitted to participate in th~ auctions. Under Cl. 11 no one is allowed to retract his bid when once the same has been entered in the Register of Bids. The highest bid is ordinarily accepted but the Sale Conducting Officer may not accept such bid if he has reason to belie.Ye that the name is not bona fide or genuine or the same is the outcome of concerted action on the part of the dealers or a section of them for the purpose of controlling or manipulating prices, etc. subject to hiS recording the reasons for such rejection in the Register of Bids. Clause 19 deals with weighment, delivery and payment of price and contains a.n over·riding pro· visions to the effect that the "property in the coffee sold shall not pass to the buyer until after he has paid t
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