Controlled mineral supply remained a taxable sale where statutory compulsion did not eliminate real contractual choice.

Supply of minerals under a regulatory regime and agreement with the Department of Atomic Energy was held to remain a sale for Central Sales Tax purposes. The court reasoned that a transaction falls outside the concept of sale only where statutory compulsion removes all real volition and consensus between the parties. Here, no compulsory acquisition under the Atomic Energy Act, 1948 was shown; the supplier's freedom was restricted, but not eliminated. Mere restriction on purchaser, supply, or price did not destroy the character of the transaction as a sale. The supply transactions were therefore chargeable to central sales tax.

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Issues: Whether the supply of minerals under the regulatory regime and agreement with the Department of Atomic Energy constituted a sale liable to assessment under the Central Sales Tax Act, 1956.

Analysis: The transaction was examined in the context of statutory control over atomic minerals, but no compulsory acquisition under the Atomic Energy Act, 1948 was shown. The agreement and surrounding facts left a real field for choice, even though the supplier's freedom was substantially restricted. A transaction is taken out of the concept of sale only where the law or compulsion leaves no volition or consensus between the parties. Mere restriction on the choice of purchaser, supply, or price does not by itself destroy the character of a sale. The reasoning was applied consistently with the later Supreme Court line of authority distinguishing absolute compulsion from controlled but still voluntary transactions.

Conclusion: The supply transactions constituted sales and were chargeable to Central sales tax. The answer was against the assessee and in favour of the revenue.

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