TMI Blog1954 (3) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... under protest. The main question in both the cases is whether in respect of the two transactions, the sales took place within the State of Madras or outside the State. In both cases, the goods were sent by rail consigned to self and the railway receipt was sent to the agents of the plaintiffs outside Madras on condition that it should be given to the buyer on payment of the sale price. There is one clause in the invoice to the effect that the responsibility of the seller ceases after the goods are booked and the railway receipt obtained and sent to the party. It is on account of this clause, it was contended before the taxing officers, as well as before the lower court and here, that the goods have passed to the buyer even at the time the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 122 of the Sale of Goods Act, such a clause is not inconsistent with the ownership continuing with the vendors themselves. The observations of Lord Hatherley in Anderson v. Morice(1), are extracted at page 123 of the book and they are as under: "It is perfectly conceivable, indeed, in many cases it has been so as a matter of fact, that a person selling some goods at a distant place to a person living in this country, may say, 'I am perfectly willing to sell you these goods; I am perfectly willing to complete the cargo so to be sold, but I do not intend to be at the risk of their loss during the transit or on the voyage, and although you will not be expected to pay for the goods and acquire the property until you have the bills and the do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of the Madras Sales Tax Act and no tax could be levied upon such a transaction under the provisions of the Act." The cases under appeal are on all fours with the above case and the principles will apply to the cases under appeal. Learned counsel for the appellant relies upon the decision in Brij Coomaree v. Salamander Fire Insurance Co.(1) There the observations of Maclean, C.J., are: "It seems to me that there are certain clauses in the agreement of the 16th January, 1903, which point strongly to the conclusion that the property was intended to pass and did pass to the buyer upon the exe- cution of the contract. The provision that the sellers might on the hap- pening of a certain contingency, detain the oil unpaid for on the buyer's ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion is clearly established by the circumstances that the vendors themselves have taken the railway receipts in their own names and have not allowed them to be delivered to the buyers except on payment of the price due. Till then, it is clear, their inten- tion was to retain the ownership of the goods in themselves. The ownership in fact continues to vest in the sellers till the railway receipts are obtained after payment of price by the purchasers, which can happen only at the other end. The goods are therefore really sold out- side the State and the State cannot therefore levy the tax on these goods. The judgment and decrees of the lower court are confirmed and the appeals are dismissed with costs. Appeals dismissed. - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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