TaxTMI 
TaxTMI 
1974 (6) TMI 30
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....ire soap manufactured at the Factory is canalised for sale through a sole selling agent called "Mysore Sales International", with the assistance of five zonal agents who are required to promote the sales of soap in their respective zones. The sales of soap to these agencies are governed by written agreements. In the agreements as between the Government and the sole selling agent it is stated :- Clause 5(a) "All supplies to the Agents by the factory shall be at wholesale rates fixed by the factory from time to time and against cash payment or payments against Railway or Lorry receipts through recognised Banks. All deliveries will be F.O.R. destination. (nearest Railway Station by goods train) or by Lorry service and the freight char....
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....Government and not to the wholesalers. There seems to be a dispute on this question about which I will consider a little later. 3. The sole question involved in this petition is, what exactly the trade discount allowable in terms of the Explanation to Section 4, in determining the wholesale cash price of the soap manufactured by the petitioner. 4. Before I consider the question, I may set out herein the events leading to the petition. For the period 1-3-1964 to 30-6-1969, the Superintendent of Central Excise approved the price lists submitted by the petitioner in which it was shown that the wholesale buyers of the soap products shall be allowed a discount of 6%. On that basis, he made an order of assessment dated 31-3-1969 demanding d....
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....ana Rao, Counsel for the respondents. He argued that the dispute in this petition is a dispute between the State Government and the Central Government and that dispute exclusively falls for determination under Article 131 of the Constitution before the Supreme Court and therefore this petition under Article 226 is not maintainable. In my opinion, there is no substance in the contention. This is not a dispute as between the State of Karnataka and the Central Government. In the State of Bihar v. Union of India (1) AIR 1970 S.C. 1446, the Supreme Court had an occasion to consider the scope of Article 131 and it was observed : "Although Article 131 does not define the scope of the disputes which this court may be called upon to determine in ....
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....ute which is decided. A tribunal does not decide its own dispute, and as explained by the Supreme Court on at least four occasions, the Central Government is a tribunal when it decides a revision petition or an appeal or an application for review." The above observation applies in every respect to the facts of the present case and I therefore reject the preliminary objection. 7. The several findings recorded by the Deputy Collector regarding the non-existence of the wholesale market and other like matters, are not rightly supported by Sri U.L. Narayana Rao, Counsel for the respondents. Much of the controversy involved in this petition does not survive today in view the present decision of the Supreme Court in A.K. Roy v. Voltas Limite....
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....to sell the soap on wholesale basis or at the wholesale market rate. The bulk of the soap manufactured by the petitioner was sold as per the terms of the agreements. The respondents have neither denied the execution of those agreements, nor doubted the validity of bona fides of the terms thereof. That being the true position in the case, the terms under which the said sales were made, should be the basis for determining the price of the soap, and not the terms by which a few isolated sales were made apart from the agreements, because the sales effected under the agreements did not cease to be wholesale sales merely because the wholesale dealers have entered into agreements with the petitioner. The decision of the Supreme Court in Voltas cas....