Judgment

SUBBA RAO, J. : This is a petition under Art. 32 of the Constitution for quashing the order of the first respondent dated February 9, 1959, setting aside the order of the second respondent allowing a deduction of an amount of Rs. 1,86,42,730-15-0 from the petitioner s sales tax turn-over on the ground that the said amount was not liable to tax by virtue of S. 46 of the Bombay Sales Tax Act, 1953 (Act III of 1953), (hereinafter called the Act).

2. The material facts are not in dispute and they may be briefly stated: The petitioner is a private company within the meaning of the Companies Act, 1956, and has its registered office at Kasturi Buildings, Bombay-1. On March 24, 1954 and April 15, 1954, the petitioner entered into two contracts with the Government of India for selling to the latter two consignments of sugar -one of 9500 Long tons of sugar of Peruvian origin and the other of 25000 Metric Tons of sugar of continental origin. To fulfil the terms of the contracts, the petitioner placed order with dealers in foreign countries. The following are the particulars relating to the first contract dated March 24, 1954, for the supply of 9500 Long tons of sugar :

(i) 3rd April, 19