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1973 (8) TMI 127 - SUPREME COURT
Whether the agreement between M/s. Kelvinator of India (assessee), M/s. Spencer & Co. Ltd., M/s. Blue Star Engineering Co., and M/s. General Equipment Ltd., in pursuance of which the refrigerators manufactured by M/s. Kelvinator of India at Faridabad moved to Delhi were merely for distribution of goods between the principal and his agents or were agreements of sale between two parties?
Held that:- Appeal allowed. Accept the appeal and set aside the judgment of the High Court. The answer given by the High Court to the question referred to it is discharged. The three agreements between the appellant and the distributors were merely agreements for the distribution of goods and were not agreements of sale between the parties. It cannot, in our opinion, be said that there was any movement of refrigerators form Faridabad to Delhi under a contract of sale. The question in the circumstances is answered against the department.
The transactions between the appellant and the distributors did not, in our opinion, constitute sale in the course of inter-State trade or commerce. As such, there was no liability to pay tax under the Act. The appellant shall be entitled to the costs from the respondent of this court as well as in the High Court.