THE COMMISSIONER OF SALES-TAX,EASTERN DIVISION, NAGPUR vs HUSENALI ADAMJI AND CO.

The Supreme Court held that under Section 23 of the Indian Sale of Goods Act, 1930, the property in unascertained goods does not pass to the buyer until the goods are appropriated to the contract. In this case, the logs were sent by the respondent to the consignee for inspection and acceptance, meaning the property remained with the respondent until the consignee accepted the logs as conforming to the contract specifications. The court ruled that the respondent was not liable to pay sales tax under the Central Provinces and Berar Sales Tax Act, 1947, as the transfer of property had not occurred at the time of loading the logs onto the railway wagons.