TMI Blog1976 (9) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... s was a result of the contract of sale and the fact that the contract emanated from correspondence which passed between the Bombay branch and the company could not make any difference. - C.A. No. 1838 of 1969, W.P. Nos. 483, 484, 485, 486, 487 of 1974, C.A. No. 608 of 1973 - - - Dated:- 21-9-1976 - RAY A.N., BEG M.H. AND SHINGHAL P.N. JJ. M.C. Bhandare, Senior Advocate, and M.N. Shroff, Advocate, with him, for respondent No. 6 in W.P. Nos. 483-487 of 1974. S.T. Desai, Senior Advocate, A.V. Rangam and Miss A. Subhashine, Advocates, for respondents Nos. 1 and 2 in C.A. No. 1838 of 1969 and W.P. Nos. 483-487 of 1974 and respondent in C.A. No. 608 of 1973. S.N. Prasad, R.N. Sachthey and Girish Chandra, Advocates, for responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery would be ex works Madras. The Bombay buyer thereupon placed the order with the Bombay branch. On these facts counsel for the appellant contended that the sale was at Bombay inasmuch as the Bombay buyer placed the firm order at Bombay, payment was to be made at Bombay, railway receipt was in the name of the Bombay branch and the goods were to be delivered at Bombay. It was emphasised that there was no contract or privity between the Madras branch and the Bombay buyer but the privity was only with the Bombay branch. The only question is whether the sale was an inter-State sale or a sale at Bombay. If the movement of the goods from Madras to Bombay was an incident of or occasioned by the sale itself it would be taxable under section 3( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er stated that all goods would be despatched at the risk of the Bombay buyer. It is in this context that the Bombay buyer on May 27, 1964, placed an order with the Bombay branch accepting all the terms and conditions. The Bombay branch placed an indent order addressed to the Madras branch giving all the particulars and stated the buyer's name as Asha Metal Works, Bombay, and gave the customer's order number and the date, viz., May 27, 1964. The goods were to be invoiced to the Bombay branch and the goods were to be despatched f.o.r. Madras. The Bombay branch wrote to the Bombay buyer on August 28, 1964, that they had received an invoice from the factory at the Madras branch that some of the goods against the order of the Bombay buyer were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. Branches are different agencies. The contract of sale is between the appellant-company and the Bombay buyer. The appellant in the present case sent the goods direct from the Madras branch factory to the Bombay buyer at Bhandup, Bombay. The railway receipt was in the name of the Bombay branch to secure payment against delivery. There was no question of diverting the goods which were sent to the Bombay buyer. When the movement of goods from one State to another is an incident of the contract it is a sale in the course of inter- State sale. It does not matter in which State the property in the goods passes. What is decisive is whether the sale is one which occasions the movement of goods from one State to another. The inter-State movemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eption by a known person on behalf of the seller in the delivery State and such person's activities prior to or after the implementation of the contract may not alter the position. The steps taken from the beginning to the end by the Bombay branch in co-ordination with the Madras factory show that the Bombay branch was merely acting as the intermediary between the Madras factory and the buyer and that it was the Madras factory which pursuant to the covenant in the contract of sale caused the movement of the goods from Madras to Bombay. The inter-State movement of the goods was a result of the con- tract of sale and the fact that the contract emanated from correspondence which passed between the Bombay branch and the company could not make ..... X X X X Extracts X X X X X X X X Extracts X X X X
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