1977 (11) TMI 125

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....on cases are by the Madura Coats Limited, Koratti, a public limited company. The assessment years are 1969-70, 1970-71, 1971-72 and 1972-73. The orders for the first three assessment years are by way of reopening the assessment; and in the last assessment year, the order is one of original assessment. The assesseecompany receives yarns from Messrs. Madura Mills Company Ltd. The yarn supplied is wo....

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....prevent damage in transit. (iv) The cones or cheeses and plywood stiffeners are returnable. (v) The rate for yarn agreed between us is consolidated rate including the cost of cones, stiffeners and other packing materials. (vi) You will be given credit for cost of cones, stiffeners, etc., at rates agreed between us as and when returned. (vii) It is agreed that the sale is for actual con....

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....at there was an obligation to return the cones and that the sale price is worked out only on the actual content of the yarn, without taking into account the value of the cones. No doubt clauses 4 and 7 are to this effect. But, as pointed out by the learned Government Pleader, clause 6 seems unmistakably to indicate that the cost of the cones will be given credit to "as and when" they are returned.....

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....3.. The decision in Dyer Meakin Breweries' case[1972] 29 S.T.C. 69., on which counsel for the assessee relied, has no application. There, on the facts, the transaction with respect to the bottles was held to be only a deposit and not a sale. There are no grounds to hold so in this case. 4.. Counsel for the assessee raised a point that the assessee can be assessed to sales tax on the turnover or....