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TMI Blog1965 (8) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment year 1952-53 it sold sugar at the mills. The sugar was carried from the mills by transport agents to places outside the State of U.P. and consequently the Judge (Revisions) held that the sales took place outside the State. He, therefore, held that the turnover of the sales was exempt from taxation by Article 286(1)(a) of the Constitution. Article 286(1)(a) lays down that no State can impose a tax on the sale of goods where the sale takes place outside the State, and that for the purpose of that provision a sale is deemed to take place in the State where actual delivery of the goods takes place for consumption in it. A sale takes place outside the State desiring to tax it if it takes place in another State. If there is a sale and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order made by the Sales Tax Officer. Then at the instance of the Commissioner of Sales Tax he submitted this statement to this Court. The statement came before a Bench of this Court, of which one of us was a member, previously. The Bench found that the statement was incomplete because it did not mention whether the assessee had instructed the transport agents to load the sugar in trucks and deliver it to the purchasers, or the purchasers had instructed them to do so. It could not be said that the actual delivery was made outside the State merely because the sugar reached the purchasers outside the State. The sugar could reach the purchasers outside the State in spite of their taking delivery of it within the State; if they took d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffect that the transport agents acted as agents of the purchasers and not of the assessee. This means that the actual delivery took place inside the State and not outside it. Actual delivery means actual delivery of the goods sold, whether to the purchaser himself or to his agent or servant, as distinguished from constructive delivery of the goods to the purchaser or his agent or servant through a receipt or other title deed. Here the sugar itself was actually delivered at the mills. Since it was delivered to the agents of the purchasers it was actual delivery to the purchasers. Since there is no other State in which the actual delivery took place, it cannot be said that there is another State in which the sales took place. In other words, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to show that the transport agents had carried the sugar from the mills across the border to places outside the State under instructions from itself, and not the purchasers, and that consequently the actual delivery was effected by it outside the State. It had failed to produce this evidence and it was open to the Judge (Revisions) to draw an adverse presumption from this initial failure on its part. He was not prevented from drawing the presumption merely because he illegally gave the assessee a fresh opportunity of producing evidence and it failed again to do so. One more contention of Sri H. P. Gupta was that unless it was found that the sugar was to be consumed in this State it could not be held that the sales took place in this State. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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