Contractual sale despite price control: regulated copper supply could still be treated as a sale under sales tax law.

Supply of imported copper under the Non-ferrous Metals Control Order, 1958 remained capable of being treated as a sale under the Bombay Sales Tax Act, 1959 because the regulatory scheme, though fixing a ceiling price and restricting sales to permit-holders, did not remove all freedom of contract. The parties could still negotiate material terms such as supply, delivery, quality, timing and payment within the permitted framework, and the statutory price control alone did not negate contractual assent. Distinguishing cases where the statute left no room for mutual agreement, the Court held that a sale agreement could still be inferred and the transaction was a sale; the assessee's contrary contention failed.

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Issues: Whether the transaction of supply of imported copper under the Non-ferrous Metals Control Order, 1958, was a sale within the meaning of the Bombay Sales Tax Act, 1959.

Analysis: The transaction had to be tested in the light of the Control Order and the surrounding dealings between the importer and the permit-holder. The regulatory scheme fixed the ceiling price, restricted sales to permit-holders, and controlled import and distribution, but it did not eliminate all freedom of contract. The parties could still negotiate the terms of supply, delivery, quality, timing and payment within the permitted framework, and the existence of a statutory ceiling on price did not by itself destroy the contractual character of the transaction. The Court distinguished cases where the statute left no room for mutual assent and treated the present arrangement as one where a sale agreement could still be inferred.

Conclusion: The transaction was a sale, and the assessee's contention that no sale existed failed.

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