Contractual delivery at destination prevents title passing on shipment, so consignments were not taxable sales at the place of dispatch.

Where contracts required delivery at the buyers' mills or godowns in Calcutta and payment was tied to delivery of documents, inspection and weighment at destination, shipment to a carrier in Assam did not itself pass property in the unascertained goods. Applying the Sale of Goods Act, the court held that appropriation and the parties' intention controlled when title passed, and the delivery to the carrier was only part of carriage, not performance of the contractual delivery obligation. The sellers therefore retained the right of disposal until destination, so the consignments did not amount to sales in Assam and were not taxable under the Assam Sales Tax Act, 1947.

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Issues: Whether the despatch of jute consignments against prior contracts amounted to a sale taxable under the Assam Sales Tax Act, 1947, having regard to when property in the goods passed and whether the seller reserved the right of disposal.

Analysis: The contracts contemplated delivery at the buyers' mills or godowns in Calcutta, with payment of most of the price against delivery of documents and the balance after inspection and weighment. The goods were unascertained goods, so the passing of property depended on appropriation and the intention of the parties under the Sale of Goods Act. Delivery of the goods to a carrier in Assam was held to be only a step in carriage, not delivery in performance of the contractual obligation to deliver at Calcutta. The conditions for delivery and payment remained live until performance at the destination, which showed that the sellers had reserved the right of disposal and that property did not pass on shipment from Assam.

Conclusion: The despatches did not amount to sales in Assam and were not taxable under the Assam Sales Tax Act, 1947.

Final Conclusion: The reference was answered in substance in favour of the assessees, and the assessments failed insofar as they were based on the impugned consignments.

Ratio Decidendi: Where a contract requires delivery at a destination and payment is linked to that delivery, shipment to a carrier at the place of despatch does not by itself pass property or constitute a taxable sale at the place of despatch if the seller retains the right of disposal until performance at the destination.

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