Deemed place of sale under sales tax law applies where contract is made while goods are in the State.

Goods sent to persons described as selling agents outside the Province were held to be sales within the C.P. and Berar Sales Tax Act, 1947 because Explanation II to section 2(g) deemed a sale to take place in Madhya Pradesh where the contract was made while the goods were within the State. The Board of Revenue had found that the contracts were concluded when the goods were situated in the Province, and that finding made the statutory deeming provision operative. A challenge that there was no material to support the finding was not entertained because no such question had been properly referred. The transactions were therefore treated as sales within Madhya Pradesh.

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Issues: Whether transactions in goods sent to persons described as selling agents outside the Province were sales within the meaning of the C.P. and Berar Sales Tax Act, 1947, so as to be included in the taxable turnover in Madhya Pradesh.

Analysis: Explanation II to section 2(g) provided that where the goods in respect of which a sale is concluded are within the State at the time the contract of sale is made, the sale is deemed to have taken place in Madhya Pradesh, regardless of where the contract is ultimately completed. The Board of Revenue had recorded a definite finding that the contracts of sale were made when the goods were situate within the Province. On those findings, the legal consequence under the Explanation followed automatically. The contention that there was no material to support the finding could not be entertained, as no such question had been properly referred.

Conclusion: The transactions were sales within the meaning of the Act and were rightly treated as sales made within Madhya Pradesh.

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