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TMI Blog1964 (6) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... scribed as Form 'C'. The Madras State Government under its rule-making powers, framed rule 10(1), the proviso of which at the period of the present sale, read: "Provided that no single declaration shall cover more than one transaction of sale, except in cases where the total amount covered by one declaration is equal to or less than Rs. 5,000 or such other amount as the State Government may, by a general order, notify in the Fort St. George Gazette." This proviso was subsequently modified thus: "Provided that when goods are delivered in instalments within the same financial year against one purchase order, and a declaration in Form 'C' covering the entire order is furnished along with the return for the period relating to the first instalm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'C' Form for each instalment and since there were no such separate 'C' Forms, the assessees were bound to pay tax at the higher rate of seven per cent. and would not be entitled to the benefit of the lower rate of one per cent. However, the Sales Tax Appellate Tribunal was of the view that since the invoices were all raised against a single purchase order, each of the invoices could not be treated as a separate transaction of sale requiring a separate 'C' Form, and thereafter gave the assessee the benefit of the lower rate assessment. It is against this decision of the Tribunal, that the present revision has been filed in this Court by the State of Madras. We heard the arguments of learned counsel for the petitioner and learned counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... greement, during the course of the fulfilment of the contract. It cannot therefore be held to follow automatically, that the contract gave rise to as many distinct sale transactions as there were deliveries by instalments followed by corresponding invoices. In this connection, we also refer to the remarks of Benjamin on "Sale" at page 734 (eighth edition): "1. Every contract for a quantity of goods is an entire contract for that quantity, though the goods may be deliverable by instalments in the sense that full delivery is prima facie a condition precedent to the liability of the buyer to pay any part of the price. 2.. An instalment contract may be implied from the terms of the contract, or may be inferred from the circumstances. Thus, f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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