1970 (1) TMI 72

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.... shoes. It obtains orders for the supply of shoes from the Government and, on receipt of these orders, the assessee places orders for manufacture of shoes with its members. The members select the raw materials from the market and inform the central co-operative society. The society purchases the raw materials from the market and supplies them to its members. At the time of supply it debits the exact cost of the raw materials in the account of each member to whom the raw material is supplied. The member, after manufacturing the shoes, supplies them to the assessee. The members prepare a bill in which, in addition to the price of the raw materials, Re. 1 to Rs. 2-8-0 per pair are charged. The assesseesociety pays to its members the price ment....

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....w materials for sale to its members. Another object was to secure business for itself and its constituents and to arrange its supply according to plan and to act as a clearing house for supply and disposal of raw materials, tools, implements and machinery and goods. It has also been found that whenever the raw materials supplied to a particular member remains in surplus with it, it is either returned to the assessee or transferred to some other members at the direction of the assessee. None of the authorities below have found a single instance where the member of the assessee may have disposed of the raw material supplied to it by the assessee, itself. Further, there is no finding that there was any instance where the primary societies afte....