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TMI Blog1965 (12) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... les Tax Act (Bombay Act 3 of 1953-hereinafter referred to as the Act) as they were made "from a person who is not a registered dealer". The Cochin sellers had their agents in Bombay who received orders on behalf of the appellant. The orders of the appellant were accepted by the agents in Bombay and the goods were shipped by the sellers from Cochin to Bombay. After the goods were shipped, the demand drafts were forwarded along with the bills of lading by the vendors to their bankers in Bombay. The bankers endorsed the bill of lading in Bombay and handed it over to purchasers in Bombay in exchange for the price. The price was also paid in Bombay. In the bills of lading the sellers in Cochin were described as both consignors and consignees. After the goods were shipped, an invoice was drawn on the appellant in which were printed the following words: "Shipped per S.S.-from Cochin to Bombay on account and risk of Messrs Carona Sahu Co. Ltd., 15-A Elphinstone Circle, Fort, Bombay." For the period April 1, 1954, to March 31, 1955, the appellant was assessed to purchase tax by the Sales Tax Officer, Licence Circle, Bombay, by his assessment order dated March 31, 1956, under clause (a) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nything more than that the insurance charges were to be paid by the buyers. On behalf of the appellant, Mr. Donde submitted that the property in the rubber consignments had passed to the appellants in Cochin. In our opinion, there is no warrant for this submission and the view taken by the High Court is correct. The law is well-established that in the case of a contract for sale of unascertained goods the property does not pass to the purchaser unless there is unconditional appropriation of the goods in a deliverable state to the contract. In the case of such a contract, delivery of the goods by the vendor to the common carrier is an appropriation sufficient to pass the property. But there is a difference in the legal effect of delivering goods to a common carrier on the one hand and shipment on board a ship under a bill of lading on the other hand. Where goods are delivered on board a vessel to be carried, and a bill of lading is taken, the delivery by the seller is not delivery to the buyer, but to the captain as bailee for delivery to the person indicated by the bill of lading. The seller may therefore take the bill of lading to his own order. The effect of this transaction is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orsement in the invoice merely indicated that the insurance charges were to be paid by the appellant and the clause has no bearing on the question of the passing of title. In Shepherd v. Harrison [1871] L.R. 5 H.L. 116., the plaintiff in England sent an order to P and Co. at Pernambuco to buy cotton for the plaintiff. P and Co. bought cotton on account of the plaintiff and made out an invoice "on account and risk of M/s. John Shepherd & Co." but the bills of lading were taken deliverable to P and Co.'s order or assigns paying freight. The invoice was sent directly to the plaintiff but the bills of lading were endorsed in blank by P and Co. and sent with the bill of exchange to their own agents in England. The English agents forwarded the bills of lading with the bills of exchange to the plaintiff requesting him to accept the bill of exchange. The plaintiff retained the bill of lading but returned the bill of exchange unaccepted on the ground that P and Co. had not complied with the plaintiff's order. The plaintiff then presented the documents to the defendants who refused to deliver the cotton in view of the instructions from the agents of the consignor. On these facts, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bombay, excluding the transferred territories for cash or deferred payment or other valuable consideration and includes any supply by a society or club or an association to its members on payment of price or fees or subscription, but does not include a mortgage, hypothecation, charge or pledge. Section 6 of the Act is to the following effect: "(1) Subject to any rules made under section 18B there shall be paid by every dealer who is liable to pay tax under this Act- (ia) sales tax or purchase tax on his sales or purchases in accordance with the provisions of section 7A, (a) a sales tax on his sales levied in accordance with the provisions of section 8. (b) a general sales tax on his sales levied in accordance with the provisions of section 9, and (c) a purchase tax on his purchases levied in accordance with the provisions of section 10, (d) a tax on his purchases levied in accordance with the provisions of section 10AA. (2) The tax payable by a dealer under any clause of sub-section (1) shall be paid in addition to the tax or taxes, if any payable by such dealer under any other clause or clauses of the said sub-section." Section 10(a) states as follows: "10. Subject to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se and the purchases in question accordingly are liable to tax. The next contention of Mr. Donde is that the provisions of section 10(a) cannot apply to transactions of purchase where the purchased goods have been brought from outside the State of Bombay for consumption in that State because section 10C of the Act would apply to such transactions. We do not think there is any warrant in this argument. Section 10C reproduces the Explanation to Article 286(1)(a) of the Constitution and it would apply where under general law the sale takes place outside the State but the goods are delivered as a direct result of the sales for consumption within the State of Bombay. The buyer referred to in section 10C need not necessarily be a dealer under the Act, because so far as the dealers are concerned they are only liable to three types of taxes, viz., sales tax, general tax and purchase tax, enumerated in section 6 which is the charging section. On the other hand, section 10C applies to a "buyer" who brings into the State of Bombay goods which are notified in the official Gazette. It should also be noticed that section 10C deals only with certain specific goods to be notified by the State Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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