Delivery order transfer can be a fresh sale where third parties buy goods for an extra price and tax applies separately.

Transfer of kutcha delivery orders and gunnies to third parties did not amount merely to an assignment of the right to obtain delivery. A delivery order is a document of title under the Sale of Goods Act, and while the holder may transfer the right to receive the goods, the facts showed that the Mills dealt only with the appellants as contracting parties and the third parties acted only as agents for delivery. The transfer by the appellants to the third parties was separate in law and in fact from the Mills' delivery, even though contemporaneous. The third parties purchased the goods for an extra price from the appellants, so the transaction was a fresh sale liable to sales tax.

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Issues: Whether the transfer of kutcha delivery orders and delivery of gunnies to third parties amounted only to an assignment of a right to obtain delivery, or constituted a separate sale liable to sales tax.

Analysis: The Mills recognised only the appellants as contracting parties, and the third parties acted only as agents so far as delivery from the Mills was concerned. A delivery order is a document of title to goods under Section 2(4) of the Sale of Goods Act, and the holder may transfer the right to receive the goods. On the facts, the delivery by the Mills to the third parties and the transfer by the appellants to those third parties were separate in law and in fact, even if contemporaneous in point of time. The third parties purchased the goods for an extra price from the appellants, and any contractual claim lay against the appellants, not the Mills.

Conclusion: The transaction between the appellants and the third parties was a fresh sale, and sales tax was payable at both stages.

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