The Revising Authority, Varanasi, has referred the following three questions for the opinion of this Court :

" (1) Whether, on the facts and circumstances of this case, the supply of cement from churk Cement Factory to dalla Cement Factory amounted to sale, and liable to sales tax ?

(2) Whether, on the facts and circumstances of the present case, the amount of freight is to be excluded from the taxable turnover ? and

(3) Whether, on the facts and circumstances of the case, the amount of freight is to be taxed at the rate of 10 per cent. under the Central Sales Tax Act, even though the primary transaction is covered by form D ?"

The U. P. Government owned a cement factory known as "churk Cement Factory". It thereafter decided to establish another factory at Dalla. Cement was required for constructing the Dalla Cement Factory, and the State Government decided that cement be supplied from the "churk Cement Factory". The Churk Cement Factory started billing the Dalla Cement Factory for supplies of cement. The Dalla unit paid for the cement supplied by the Churk Cement Factory. Although, the Churk Cement Factory had billed the Dalla Cement Factory for the supply of the cem