1987 (6) TMI 379

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Kerala General Sales Tax Act. The Revenue is the respondent. The matter relates to the assessment year 1977-78. In assessing the petitioner, the assessing authority added the value of the goods returned to the assessee by certain purchasers without taking delivery, by holding that they are sales attracting levy of sales tax, under the provisions of the Kerala General Sales Tax Act. The said tur....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he assessee. It was opined that it may be true that as per the conditions in the invoice, the assessee has got the right to recall the goods or to consider the property in the goods to be assessee's own to enforce the conditions in the invoice. But, these conditions are not in keeping with the provisions of the Kerala General Sales Tax Act where a sale emanates at the point of appropriation of goo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....essee laid stress on the condition appearing in the invoice to the effect that the property in the goods will remain with the company until payment of the invoice amount is received by the company either direct from the purchaser or from the company's bankers against retirement of documents of title to the goods. The Appellate Tribunal wholly misunderstood section 2(xxi), explanation (4) to hold t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t of documents of title to the goods. The above clause shows that the appropriation, if any, is conditional. It is evident that this condition was not fulfilled. On this basis, there is no escape from the position that the sale did not fructify. If that basis, there was no sale exigible to tax. The assessing authority as well as the Appellate Tribunal were in error in holding that such unfructi....