AIR 1977 SUPREME COURT 1275 ::1977 TAX. L. R. 2002 ::1977 SCC (Tax) 401 ::1977 Rev LR 512 ::1977 3 SCC 147 ::40 STC 42 ::1977 3 SCR 578 ::1977 2 SCWR 344 ::1977 U P T C 425

Supreme Court Of India

(From: Commr. of Sales Tax, Madh. Pra.)*

Hon'ble Judge(s): P. N. Bhagwati, N. L. Untwalia, S. Murtaza Fazal Ali , JJJ

Madhya Pradesh Sales of Motor Spirit and Lubricants Taxation Act (4 of 1958) , S.2(1)— "Sale" - Contract of agency or contract of sale - Construction of contract - Agreement for supply of H. S. D. Oil and petrol between assessee and oil company - Part of goods consumed by assessee itself - Held, the consumption by the assessee was not sale eligible to tax. Decision of Commissioner of Sales Tax (M. P.) in Revision Case Nos. 2-5/RMS of 1968-1969, D/- 5-5-1970, Reversed.(1961) 12 STC 464 (Ker) held impliedly overruled by AIR 1968 SC 784 and AIR 1967 SC 181.(1891) 35 Law Ed 882, Dissented from. The appellant-assessee primarily carried on the business of manufacturing sugar and incidentally the business of selling HSD oil, petrol and lubricants from the petrol pump installed by the appellant in the factory premises. The appellant entered into an agreement with Caltex (India) Ltd., for supply of petrol and petroleum products to it on certain conditions. In the course of its business the appellants sold petrol to various trucks and other car owners and also consumed part of the petrol for its own purposes. Under the terms of the agreement between the Caltex Company and the appellant the loss sustained by the latter had to be borne by it after delivery of the goods and the Caltex Company was not responsible for the same. The question arose whether the....