( 1 ) PETITIONER is a registered dealer under the Karnataka Sales Tax 1957 (Act for short) carrying on business inter alia, in buying and selling damaged food grains (wheat and rice) nom Food Corporation of India.

( 2 ) FOOD Corporation of India (FCI for short) first respondent herein periodically issues tender notices for disposal of damaged food grains specifying the purpose for which such imaged food grains can be used The four specified purposes are: (1) fit for cattle/poultry feed; (2) fit for industrial use as manure as for use as manure; (3) fit for use as manure only; and (4) fit for manufacture of inedible starch only. Clause (L) (i) of the General terms and conditions of sale of damaged food grains provides thus: it is absolutely necessary that the buyer of any particular category of stock shall use the same only for the purpose indicated and shall make no attempt whatsoever for adulteration or misuse of the stocks. The Food Corporation of India will take a serious view of any breach of these conditions of sale. It will also not be open to the buyers to question the categorization of the stock as shown in the tender.

( 3 ) PETITIONER made several purchases