Disputed turnover classified as "unfructified sales" not "sales returns," entitling tax refund.

The court held that the disputed turnover constituted "unfructified sales" rather than "sales returns," entitling the appellant to a tax refund. The court rejected the Board of Revenue's decision based on the time-limit for claiming refunds, emphasizing that unfructified sales did not fall under the category of sales returns. Previous judgments supported this classification, highlighting that tax liability arises only from completed sales. Additionally, the court addressed the issue of double taxation on the same goods, ruling in favor of the appellant. The appeal was allowed, setting aside the Board's order and restoring the assessing officer's decision.

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Issues: Whether the disputed turnover represented unfructified sales or sales returns, and whether the claim for refund of tax was barred by the time limit under the applicable sales tax provision and rule.

Analysis: The transaction pattern showed that invoices were raised, the documents were sent through bankers for retirement, and if the buyer failed to retire them, the goods came back without completion of the sale. On those facts, the property in the goods did not pass to the buyer merely because the goods had been despatched, and the matter was governed by the principle that sales tax attaches only to a completed sale and not to a mere agreement to sell. The provisions relating to place of sale and the cited decision on sales return were distinguished because they did not determine when title passed in the present facts. The material also showed that the returned goods were later resold and tax was collected again, which reinforced that the original transaction had not culminated in a completed sale.

Conclusion: The disputed turnover was held to be unfructified sales and not sales returns, so the tax paid thereon was refundable and the claim could not be rejected as time-barred on the footing adopted by the revenue.

Ratio Decidendi: Where goods are despatched under documents that are not retired by the buyer and property in the goods does not pass, the transaction is an unfructified sale rather than a sales return, and tax paid on such transaction cannot be denied refund by applying the time limit meant for sales returns.

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