TMI Blog1957 (7) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... n 1st April, 1937, by the assessee-company on the one hand and the predecessor-in-title of Kanhaiyalal Pradhan on the other. The terms of the agreement are reproduced below: (i) The agent shall stock for sale sufficient stock of Cannon Brand bidi, our own make, and shall not stock bidi from any other source of Saugar or of Saugar side. (ii) The rates for sales shall be fixed by the company. The agent is bound to adhere to these rates, any reduction or increase in which shall be made whenever desirable by the company. (iii) Out of the commission allowed to the agent as per para. (xi) below, the agent will pay to the wholesale dealer a commission of Re. 0-0-3 per thousand bidis sold. (iv) The company will not be responsible for any shortage i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atch will be made freight prepaid and the money will be realised through the Allahabad Bank to whom the documents will be addressed or through V.P.P. to pay to the agent a commission at Re. 0-0-9 (pies nine only) per thousand bidis on receipt every quarter of the claim from the agent showing the amount due and how it is arrived at. (xii) This agreement can be terminated by 60 days' notice on either side, showing sufficient reasons. The company will not be responsible to receive any unsold stock. 3.. Apart from the agreement, there was also a statement made on solemn affirmation before the Assistant Commissioner of Sales Tax by the representative of the assessee-company. It is reproduced below: "........He (the consignee at Bareilly) is ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o this section which is relevant in this connection is reproduced below: "Notwithstanding anything to the contrary in the Indian Sale of Goods Act, 1930, but subject to the provision contained in the Explanation to clause (1) of Article 286 of the Constitution, the Sale or purchase of any goods shall be deemed for the purposes of this Act to have taken place in this State wherever the contract of sale or purchase might have been made- (a) if the goods were actually in this State at the time when the contract of sale or purchase in respect thereof was made, or (b) in case the contract was for the sale or purchase of future goods by description, then if the goods are actually produced or found in this State at any time after the contract of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted to sales. It is not doubt true that under the agreement, he had to sell the bidis at the price fixed by the assessee-company, and for the sales effected at that price, he was entitled to receive a commission. But for the bidis that he got for sale, he had to pay the price. If he made any profits, they apparently went into his own pocket, for which he had not to give any account. What he had to submit to the assessee-company was only an account "of stock received and sold and the balance on hand at the end of every month", so that the assessee-company was in a position to know "the situation of the business." The real effect of the transactions, however, was to confer on the assessee-company all the rights of a vendor, and on Kanhaiyala ..... X X X X Extracts X X X X X X X X Extracts X X X X
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