TMI Blog1959 (9) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... nds owned by the assessees which was sold to M/s. the United Coffee Supply Co., Ltd. The agreement for sale fixed the price F.O.R. Kettery, railway station in the Madras State, and stipulated that the sellers should have the goods packed, marked and despatched to destinations, in accordance with the instructions which the buyers were to give from time to time. After entering into the contract with the assessees, the buyers, the United Coffee Supply Co., Ltd., in turn, entered into contracts for sale of tea with various persons outside the Madras State. They then instructed their sellers to pack and send portions of the tea purchased by them to places where they had agreed to deliver to their own purchasers. The goods were accordingly consig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y is actually so made." In order that an assessee may get exemption under the provisions of this section, three conditions should be satisfied: (1) the tea that was sold was grown by the seller on any land to which he would be entitled as owner, usufructuary mortgagee, tenant or otherwise, (2) the sale should be intended for delivery being made outside the Madras State, and (3) the delivery should have been actually so made outside the Madras State. It is admitted that conditions 1 and 3 have been satisfied in the instant case, as the tea which was the subject-matter of the disputed turnover was grown in the lands owned by the assessees, and was actually delivered outside the Madras State. The only question to be determined in order to en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very at that place by the assessees. The United Coffee Supply Co., Ltd., might have entered into a contract to sell the very goods to their customer and deliver the same there. But that cannot lead to the result that the original contract did not envisage a delivery at place A. In the present case the goods were delivered to the railway addressed to the assessees' buyers at a place outside Madras. The circumstance that the buyers' buyer was also at that place cannot prevent that place being the contemplated place of delivery as between the assessee and the buyer from the assessee. The question has to be decided on the basis of the agreement between the assessees and their buyers, the United Coffee Supply Co., Ltd. The agreement was to pac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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