{"id":185013,"date":"1971-03-17T00:00:00","date_gmt":"1971-03-16T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971"},"modified":"2016-07-20T22:22:57","modified_gmt":"2016-07-20T16:52:57","slug":"the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971","title":{"rendered":"The Deputy Commissioner (C.T.) vs Lakshminarayana Textiles (P.) &#8230; on 17 March, 1971"},"content":{"rendered":"<div class=\"docsource_main\">Madras High Court<\/div>\n<div class=\"doc_title\">The Deputy Commissioner (C.T.) vs Lakshminarayana Textiles (P.) &#8230; on 17 March, 1971<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1971 28 STC 288 Mad<\/div>\n<div class=\"doc_author\">Author: Veeraswami<\/div>\n<div class=\"doc_bench\">Bench: Veeraswami, Raghavan<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p>Veeraswami, C.J.  <\/p>\n<p>1. It seems to us that the Tribunal took the correct view. The facts found by the Tribunal are these. The assessee borrowed a certain amount of cotton from one Valliappa Textiles, which had imported the same under the actual user&#8217;s licence. The borrowing was permitted by the Textile Commissioner who directed that the loan should be returned in the shape of cotton and that neither of the transactions should be treated as a sale. It is not in dispute that the cotton imported under the actual user&#8217;s licence cannot be sold. That is apparently the reason why the Textile Commissioner gave permission to the assessee to take cotton on loan. The transaction now sought to be taxed consisted of the return of cotton to Valliappa Textiles. The transaction clearly does not amount to a sale and is not a sale. The Tribunal was right in finding that it was only a loan transaction. It may be, as contended by the department, money was paid by the assessee to Valliappa Textiles, Bangalore, in relation to the cotton borrowed. But this is for the purpose of clearing the security to which the cotton was subject in a bank. Without clearing the security, cotton could not be released and Valliappa Textiles, Bangalore, could not lend it. Such payment should not be taken as consideration for a sale.    The tax case is dismissed.    No costs.\n<\/p>\n<pre>2. T.C.   No.   402  of 1970---In the same   view,   this  tax case  is   also dismissed.    No costs.\n\n \n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Madras High Court The Deputy Commissioner (C.T.) vs Lakshminarayana Textiles (P.) &#8230; on 17 March, 1971 Equivalent citations: 1971 28 STC 288 Mad Author: Veeraswami Bench: Veeraswami, Raghavan JUDGMENT Veeraswami, C.J. 1. It seems to us that the Tribunal took the correct view. The facts found by the Tribunal are these. The assessee borrowed a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,13],"tags":[],"class_list":["post-185013","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madras-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Deputy Commissioner (C.T.) vs Lakshminarayana Textiles (P.) ... on 17 March, 1971 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Deputy Commissioner (C.T.) vs Lakshminarayana Textiles (P.) ... on 17 March, 1971 - Free Judgements of Supreme Court &amp; High Court | Legal India\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.legalindia.com\/judgments\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971\" \/>\n<meta property=\"og:site_name\" content=\"Free Judgements of Supreme Court &amp; High Court | Legal India\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LegalindiaCom\/\" \/>\n<meta property=\"article:published_time\" content=\"1971-03-16T18:30:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2016-07-20T16:52:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/www.legalindia.com\/judgments\/wp-content\/uploads\/sites\/5\/2025\/09\/legal-india-icon.jpg?fit=512%2C512&ssl=1\" \/>\n\t<meta property=\"og:image:width\" content=\"512\" \/>\n\t<meta property=\"og:image:height\" content=\"512\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Legal India Admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@legaliadmin\" \/>\n<meta name=\"twitter:site\" content=\"@Legal_india\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Legal India Admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971\"},\"author\":{\"name\":\"Legal India Admin\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#\\\/schema\\\/person\\\/0bfdffe9059fb8bb24a86d094609c5ea\"},\"headline\":\"The Deputy Commissioner (C.T.) vs Lakshminarayana Textiles (P.) &#8230; on 17 March, 1971\",\"datePublished\":\"1971-03-16T18:30:00+00:00\",\"dateModified\":\"2016-07-20T16:52:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971\"},\"wordCount\":271,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#organization\"},\"articleSection\":[\"High Court\",\"Madras High Court\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971\",\"url\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971\",\"name\":\"The Deputy Commissioner (C.T.) vs Lakshminarayana Textiles (P.) ... on 17 March, 1971 - Free Judgements of Supreme Court &amp; High Court | Legal India\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#website\"},\"datePublished\":\"1971-03-16T18:30:00+00:00\",\"dateModified\":\"2016-07-20T16:52:57+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The Deputy Commissioner (C.T.) vs Lakshminarayana Textiles (P.) &#8230; on 17 March, 1971\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#website\",\"url\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/\",\"name\":\"Free Judgements of Supreme Court & High Court | Legal India\",\"description\":\"Search and read the latest judgements, orders, and rulings from the Supreme Court of India and all High Courts. A comprehensive database for lawyers, advocates, and law students.\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#organization\"},\"alternateName\":\"Free judgements of Supreme Court & High Court of India | Legal India\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#organization\",\"name\":\"Judgements of Supreme Court & High Court | Legal India\",\"alternateName\":\"Legal India\",\"url\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/wp-content\\\/uploads\\\/sites\\\/5\\\/2025\\\/09\\\/legal-india-icon.jpg\",\"contentUrl\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/wp-content\\\/uploads\\\/sites\\\/5\\\/2025\\\/09\\\/legal-india-icon.jpg\",\"width\":512,\"height\":512,\"caption\":\"Judgements of Supreme Court & High Court | Legal India\"},\"image\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/LegalindiaCom\\\/\",\"https:\\\/\\\/x.com\\\/Legal_india\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#\\\/schema\\\/person\\\/0bfdffe9059fb8bb24a86d094609c5ea\",\"name\":\"Legal India Admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g\",\"caption\":\"Legal India Admin\"},\"sameAs\":[\"https:\\\/\\\/www.legalindia.com\",\"https:\\\/\\\/x.com\\\/legaliadmin\"],\"url\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/author\\\/legal-india-admin\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Deputy Commissioner (C.T.) vs Lakshminarayana Textiles (P.) ... on 17 March, 1971 - Free Judgements of Supreme Court &amp; High Court | Legal India","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.legalindia.com\/judgments\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971","og_locale":"en_US","og_type":"article","og_title":"The Deputy Commissioner (C.T.) vs Lakshminarayana Textiles (P.) ... on 17 March, 1971 - Free Judgements of Supreme Court &amp; High Court | Legal India","og_url":"https:\/\/www.legalindia.com\/judgments\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971","og_site_name":"Free Judgements of Supreme Court &amp; High Court | Legal India","article_publisher":"https:\/\/www.facebook.com\/LegalindiaCom\/","article_published_time":"1971-03-16T18:30:00+00:00","article_modified_time":"2016-07-20T16:52:57+00:00","og_image":[{"width":512,"height":512,"url":"https:\/\/i0.wp.com\/www.legalindia.com\/judgments\/wp-content\/uploads\/sites\/5\/2025\/09\/legal-india-icon.jpg?fit=512%2C512&ssl=1","type":"image\/jpeg"}],"author":"Legal India Admin","twitter_card":"summary_large_image","twitter_creator":"@legaliadmin","twitter_site":"@Legal_india","twitter_misc":{"Written by":"Legal India Admin","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.legalindia.com\/judgments\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971#article","isPartOf":{"@id":"https:\/\/www.legalindia.com\/judgments\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971"},"author":{"name":"Legal India Admin","@id":"https:\/\/www.legalindia.com\/judgments\/#\/schema\/person\/0bfdffe9059fb8bb24a86d094609c5ea"},"headline":"The Deputy Commissioner (C.T.) vs Lakshminarayana Textiles (P.) &#8230; on 17 March, 1971","datePublished":"1971-03-16T18:30:00+00:00","dateModified":"2016-07-20T16:52:57+00:00","mainEntityOfPage":{"@id":"https:\/\/www.legalindia.com\/judgments\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971"},"wordCount":271,"commentCount":0,"publisher":{"@id":"https:\/\/www.legalindia.com\/judgments\/#organization"},"articleSection":["High Court","Madras High Court"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.legalindia.com\/judgments\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.legalindia.com\/judgments\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971","url":"https:\/\/www.legalindia.com\/judgments\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971","name":"The Deputy Commissioner (C.T.) vs Lakshminarayana Textiles (P.) ... on 17 March, 1971 - Free Judgements of Supreme Court &amp; High Court | Legal India","isPartOf":{"@id":"https:\/\/www.legalindia.com\/judgments\/#website"},"datePublished":"1971-03-16T18:30:00+00:00","dateModified":"2016-07-20T16:52:57+00:00","breadcrumb":{"@id":"https:\/\/www.legalindia.com\/judgments\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.legalindia.com\/judgments\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.legalindia.com\/judgments\/the-deputy-commissioner-c-t-vs-lakshminarayana-textiles-p-on-17-march-1971#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.legalindia.com\/judgments\/"},{"@type":"ListItem","position":2,"name":"The Deputy Commissioner (C.T.) vs Lakshminarayana Textiles (P.) &#8230; on 17 March, 1971"}]},{"@type":"WebSite","@id":"https:\/\/www.legalindia.com\/judgments\/#website","url":"https:\/\/www.legalindia.com\/judgments\/","name":"Free Judgements of Supreme Court & High Court | Legal India","description":"Search and read the latest judgements, orders, and rulings from the Supreme Court of India and all High Courts. A comprehensive database for lawyers, advocates, and law students.","publisher":{"@id":"https:\/\/www.legalindia.com\/judgments\/#organization"},"alternateName":"Free judgements of Supreme Court & High Court of India | Legal India","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.legalindia.com\/judgments\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.legalindia.com\/judgments\/#organization","name":"Judgements of Supreme Court & High Court | Legal India","alternateName":"Legal India","url":"https:\/\/www.legalindia.com\/judgments\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.legalindia.com\/judgments\/#\/schema\/logo\/image\/","url":"https:\/\/www.legalindia.com\/judgments\/wp-content\/uploads\/sites\/5\/2025\/09\/legal-india-icon.jpg","contentUrl":"https:\/\/www.legalindia.com\/judgments\/wp-content\/uploads\/sites\/5\/2025\/09\/legal-india-icon.jpg","width":512,"height":512,"caption":"Judgements of Supreme Court & High Court | Legal India"},"image":{"@id":"https:\/\/www.legalindia.com\/judgments\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/LegalindiaCom\/","https:\/\/x.com\/Legal_india"]},{"@type":"Person","@id":"https:\/\/www.legalindia.com\/judgments\/#\/schema\/person\/0bfdffe9059fb8bb24a86d094609c5ea","name":"Legal India Admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g","caption":"Legal India Admin"},"sameAs":["https:\/\/www.legalindia.com","https:\/\/x.com\/legaliadmin"],"url":"https:\/\/www.legalindia.com\/judgments\/author\/legal-india-admin"}]}},"modified_by":null,"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/posts\/185013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/comments?post=185013"}],"version-history":[{"count":0,"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/posts\/185013\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/media?parent=185013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/categories?post=185013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/tags?post=185013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}