Govinda Menon, 7.- The plaintiff claimed the recovery of a sum of Rs. 8,514-12-6 levied by the State of Madras as purchase tax on the ground that the transaction took place in the then Province of Madras, whereas the plaintiff’s case is that no part of it ever took place in Madras. The learned City Civil Judge found that the sales tax was rightly and legitimately levied and, therefore, dismissed the suit.

According to the plaintiff, the company which is registered in England, with the Indian headquarters at Bombay and a branch in Madras used to enter into contracts with Bombay merchants for the purpose of supplying the company with groundnuts with the object of exporting them to England. The Bombay merchants have their own agents in the State of Madras who used to procure the goods and supply the same. The terms of the contract as evidenced by Exhibits A-8 and A-9 show that when the railway receipts are produced in the Bombay office with the invoice, 90 per cent. of the price would be paid for the goods, which should be transported to the port of Marmagoa, where the plaintiff’s agents weigh the same and inspect them and if the goods are suitable and according to specifications, they

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