JUDGMENT :-

SRINIVASAN, J. –

The State is the petitioner in T.C. Nos. 100 of 1962 and 255 of 1962 and it disputes the correctness of the order of the Sales Tax Appellate Tribunal made in Tribunal Appeals Nos. 325 and 326 of 1961. The facts are these :

The assessee, Messrs Khosla and Co. entered into a contract with the Director-General of Supplies and Disposals, New Delhi, for the supply of "axle-box bodies". In order to fulfil the contract, the assessee had to enter into contract with the manufacturers in Belgium. The goods were so got manufactured and imported into India and cleared at the Madras Harbour and supplied to certain parties on the instructions of the buyer, the Director-General of Supplies and Disposals, as contained in the contract itself. There was no privity of contract between the Belgium manufacturers and the Government departments who ultimately received the supplies. The manufacturers consigned the goods to the assessee under bills of lading, which, after clearance at the Madras Harbour by the assessee, were despatched for delivery to the ultimate consumers indicated by the Director-General. During the period 1958-59, supplies were made to the stores of the South