1959 (4) TMI 19

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..... placed by Messrs Bowden Carpet Co. Ltd., while the other three firms did the same against orders placed by Sri H. W. Fenoulhet. All the four firms were assessed to sales tax on the basis that they were dealers as defined in the Sales Tax Act and had sold carpets to the persons to whom the carpets had been supplied by them. They raised two objections to the assessment. The first was that they were not dealers as they had not sold the carpets. They claimed to be only manufacturing agents who had manufactured carpets against orders placed with them on a commission basis. The second was that as the carpets had been exported outside India no sales tax was payable. Both these objections were overruled by the Sales Tax Authorities. A request was t .....

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..... f they had been sold by them and they could be held to have sold them only if the title in the carpets at any stage vested in them and had been transferred by them by the endorsements of the railway receipts." Those two cases were therefore sent back to the revising authority for submitting an additional statement on the point whether the carpets in question had at any time or at any stage belonged to the assessees and if so in what manner and at what stage the title had been transferred by the assessees to the persons on whose behalf they were actually exported out of the country. The additional statement received in those cases showed that so far as the firm Messrs Samad Carpets Ltd., was concerned it had worked only as a manufacturing a .....

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..... lready been answered. Those answers and the principles on which they were based appear to be applicable to the cases of these two assessees also. In their cases too therefore the first question referred to must be answered by saying that in respect of the carpets which they have only manufactured to the order of Mr. Fenoulhet and in respect of which the title never vested in them they could not be considered to be dealers and could not be assessed to sales tax. In connection with the carpets of this kind the second question does not arise and need not be answered. If these firms too have supplied any carpets after purchasing the same from the market we do not express any opinion on the assessability of the transactions because we think they .....

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