M/S. CARONA SAHU CO. LTD. vs STATE OF MAHARASHTRA

The Supreme Court held that under Section 10(a) of the Bombay Sales-tax Act, the property in goods shipped under a bill of lading does not pass to the buyer until delivery to the consignee, which in this case was the seller. The Court clarified that the ordinary rule of passing property upon delivery to a common carrier does not apply when goods are shipped under a bill of lading, as the seller retains control over the goods. The appellant's liability for purchase tax was upheld as the property was deemed to pass in Bombay, not Cochin, and the term 'person' in Section 10(a) was interpreted to include unregistered dealers.