MALAYALAM PLANTATIONS LTD. vs THE DEPUTY COMMISSIONER OF AGRICULTURALINCOME-TAX AND SALE

The Supreme Court ruled that sales tax cannot be levied on tea sold by the appellant at an auction in Fort Cochin, as the sale occurred outside the State of Travancore-Cochin. The Court established that the critical factor for determining the location of the sale is where the property in the goods passed, which was at the auction in Madras State. The Court also noted that the argument regarding the passing of property was not raised in the High Court, thus it was not permissible to be argued in the Supreme Court. Consequently, the appeal was accepted, and the sales were deemed outside the taxable jurisdiction of Travancore-Cochin under the Travancore-Cochin General Sales Tax Act, 1950, Section 1.