Judgement

BHARGAVA, J. : These appeals arise out of proceedings for assessment of sales tax under the Madras General Sales Tax Act No. IX of 1939 (hereinafter referred to as "the Act") in respect of certain sales of cotton. The respondents were registered dealers in cotton, including kappas, groundnuts and cotton seeds with their Head Office at Bellary and Branch Offices at a number of places. They were also licensees under S. 8 of the Act in respect of cotton. They made various purchase of cotton at their places of business and subsequently sold them to different parties. Amongst these were a number of persons who were not resident within the area to which the Act applied. The question arose as to who was liable to pay the sales tax in respect of those transactions of sale of cotton in which the cotton had been sold by the respondents to non-residents. When the case came up before the Mysore Sales Tax Appellate Tribunal, the Tribunal determined the course of transactions and held as follows :-

"The examination of the contracts, the invoices, the railway receipts, insurance policies and other documents relating to the disputed turnovers shows that the non-resident foreigners place o