TaxTMI 
TaxTMI 
1997 (4) TMI 483
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....r entered into agreements with different millers to whom it supplies paddy for the purpose of milling and pays hire charges and milling charges to the millers. The impugned judgment of the Tribunal shows that as per the milling agreement the petitioner had agreed to give the by-products to the millers towards hire charges and receive only rice, at a certain percentage from out of the paddy delivered for milling. The assessing officer and the Appellate Deputy Commissioner as also the Tribunal held the by-products to have been sold by the petitioner to the millers and hence the value of by-products is liable to be added to the turnover of the petitioner. The Tribunal in reaching this conclusion relied on its earlier decision in Sri Lakshminar....
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....m. subject to maximum indicated in the SOR. The rates mentioned above will include all ancillary services not specifically stated. If any of the services mentioned aforesaid are not performed proportionate reduction will be made from the remuneration payable to the agent. The decision of the Senior Regional Manager/Regional Manager shall be final in this regard." It is conceded by the learned Government Pleader that in the agreement there is no other clause in respect of remuneration. So far as the by-products like broken rice, bran and husk are concerned the agreement provides in clause E(v) as follows: "The by-products, viz., broken rice, rice fragments, rice bran and husk, etc., obtained in the shelling of paddy shall be the pro....
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....be the responsibility of the miller. From this itself it cannot be said that there was a sale. Sales tax would be leviable only if there is a sale and if the transaction does not show that sale had taken place, the question of levy of sales tax does not arise. To decide whether a sale had taken place the essential ingredients of sale must be proved, that is, the sale had taken place for cash or deferred payment or for any other valuable consideration. The agreement is silent about such aspect. It does not also say that the transfer of property in goods is being made only for milling purpose nor there is anything to show that the goods were transferred to the millers either for cash or for deferred payment or for any other valuable considera....
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....cts stipulated that FCI would take about 66 2/3 of the resultant rice and the balance of broken and fragmented rice would be left to the custom millers in addition to the hire charges paid by the FCI. In this connection the learned authorised representatives have drawn my attention to clause E(v) of the pro forma of the agreement copy with the miller...". We do not think that the statement in the order of the Appellate Deputy Commissioner that the by-products were being given to the miller in addition to the hire charges shows an admission that those were being left towards hire charges. The statement at best was an ambiguous one and that too was an observation by the Appellate Deputy Commissioner in his own language and might also mean ....