9911796707
TMI Blog1962 (1) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1947, the following question to the High Court of Judicature at Bombay: "Whether the transactions in dispute amounted to sales in view of the agreements produced by the applicants at pages 195 to 205 of the Assistant Commissioner's record." Following an earlier judgment in Civil Miscellaneous Case No. 305 of 1954-Abdul Rashid Hafiz Din Mohammad v. The State of Bombay- the High Court answered the question in the affirmative. Messrs Haji Din Mohammad Haji Abdulla-who are hereinafter referred to as the assessees-have appealed to this Court with certificate of fitness. The assessees are bidi merchants at Kamptee, District Nagpur in the former State of Madhya Pradesh. They held at the material time a licence issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to whom bidis were despatched is the sole question which falls to be deter- mined in this appeal. The relation between the parties has manifestly to be ascertained in the light of the terms incorporated in the letter and the attendant circumstances. The designation which a party chooses to give to the relation, especially in cases of liability to pay tax, is of little consequence. The Court has in each case, having regard to the terms and the attendant circumstances, to ascertain the true relation between the parties without giving undue importance to the special expressions used by them. It is true that in commercial usage, especially in modern contracts, the expression "agents " or "agency" has acquired an extended meaning: often the so- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncy and have the right to make arrangements for the sale of bidis (remaining on hand) as they think best. Clause (9) therefore contemplates that if after the bidis have been despatched and before they are sold, "the agency" of the merchant is cancelled the assessees would have the right to arrange for sale of the bidis remaining in stock. These clauses clearly indicate that the bidis even in the hands of the merchants to whom they were despatched remained the property of the assessees. By clauses (3) and (9) these bidis in the hands of the merchants are expressly referred to as "your bidis". There is no warrant for assuming that the expression "your" in these clauses was intended to signify merely the bidis manu- factured by and not of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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