Delivery of the good

Section 32 of the sale of goods act, 1930 defines delivery to carrier.

(1)Where, in pursuance of a contract of sale, the seller is authorised or required to send the goods to the buyer, delivery of the goods to a carrier (whether named by the buyer or not) for the purpose of transmission to the buyer is prima facie deemed to be a delivery of the goods to the buyer.

(2)Unless otherwise authorised by the buyer, the seller must make such contract with the carrier on behalf of the buyer as may be reasonable having regard to the nature of the goods and the other circumstances of the case; and if the seller omits to do so, and the goods are lost or damaged in course of transit, the buyer may decline to treat the delivery to the carrier as a delivery to himself or may hold the seller responsible in damages.

(3)Unless otherwise agreed, where goods are sent by the seller to the buyer by a route involving sea transit, under circumstances in which it is usual to insure, the seller must give such notice to the buyer as may enable him to insure them during their sea transit; and if the seller fails to do so, the goods are at his risk during such sea transit.

(4)This section does not apply to a contract to which Chapter 2 of Part 1 of the Consumer Rights Act 2015 applies (but see the provision made about such contracts in section 29 of that Act)

ITO V. RAMESH KUMAR

The learned CIT(A) has erred in relying upon the provisions of Section 32 of the Sale of Goods Act, 1930, as this Act is applicable to the sales of wheat and for investment in the purchase of wheat this act is not relevant.

NEW VICTORIA MILLS CO. LTD. V. COMMISSIONER OF INCOME-TAX

Under Section 32 of the Indian Sale of Goods Act (Ill of 1930) unless otherwise agreed, delivery of the goods and payment of the price are concurrent conditions. From the order of the Appellate Tibunal it is clear that there was no agreement to the contrary between the pool association and the assessee. The assessee maintained the accounts on the mercantile basis and not on the cash basis. In the circumstances it was clearly an expenditure incurred in the year previous to the relevant account year. 

33Delivery of goods sold may be made by doing anything which the parties agree shall be treated as delivery or which has the effect of putting the goods in the possession of the buyer or of any person authorised to hold them on his behalf.

Section 33 of the Sale of Goods Act, 1930, deals with the delivery of goods sold.

This section provides as , Delivery of goods sold may be made by doing anything which the parties agrée shall be treated as delivery or which has the effect of putting the goods in the possession of the buyer or pt any person authorised to hold them on his behalt."

COMMISSIONER OF INCOME TAX V. RAJASTHAN STATE ELECTRICITY

The written down value of the machinery/equipment is ascertainable. It was held by the Hon'ble Gauhati High Court in the case CIT v. George Williamson (Assam) Ltd. (supra) that actual delivery does not mean physical possession of the assets. In this case, the symbolic delivery has taken place as per agreements. It is a valid delivery/ sale as per definition of delivery of goods in Section 33 of Sale of Goods Act, 1930.

Section 34A

of sale of goods act defines delivery of part of goods, in progress of the delivery of the whole has the same effect, for the purpose of passing the property in such goods, as a delivery of the whole; but a delivery of part of the goods, with an intention of severing it from the whole, does not operate as a delivery of the remainder.

Section 35 of sale of goods act defines buyer to apply for delivery.

Apart from any express contract, the seller of goods in not bound to deliver them until the buyer applies for delivery.

Section 36 of sale of goods act defines rules as to delivery.

(1) Whether it is for the buyer to take possession of the goods or for the seller to send them to the buyer is a question depending in each case on the contract, express or implied, between the parties. Apart from any such contract, goods sold are to be delivered at the place at which they are at the time of the sale, and goods agreed to be sold are to be delivered at the place at which they are at the time of the agreement to sell, or, if not then in existence, at the place at which they are manufactured or produced.

(2) Where under the contract of sale the seller is bound to send the goods to the buyer, but no time for sending them is fixed, the seller is bound to send them within a reasonable time.

(3) Where the goods at the time of sale are in the possession of a third person, there is no delivery by seller to buyer unless and until such third person acknowledges to the buyer that he holds the goods on his behalf:

Provided that nothing in this section shall affect the operation of the issue or transfer of any document of title to goods.

(4) Demand or tender of delivery may be treated as ineffectual unless made at a reasonable hour. What is a reasonable hour is a question of fact.

(5) Unless otherwise agreed, the expenses of and incidental to putting the goods into a deliverable state shall be borne by the seller.

Section 37 of sale of goods act defines delivery of wrong quantity.

(1) Where the seller delivers to the buyer a quantity of goods less than he contracted to sell, the buyer may reject them, but it the buyer accepts the goods so delivered he shall pay for them at the contract rate.

(2) Where the seller delivers to the buyer a quantity of goods larger than he contracted to sell, the buyer may accept the goods included in the contract and reject the rest, or he may reject the whole. If the buyer accepts the whole of the goods so delivered, he shall pay for them at the contract rate.

(3) Where the seller delivers to the buyer the goods he contracted to sell mixed with goods of a different description not included in the contract, the buyer may accept the goods which are in accordance with the contract and reject the rest, or may reject the whole.

(4) The provisions of this section are subject to any usage of trade, special agreement or course of dealing between the parties.

M.P STATE ROAD TRANS... V. SUPER STONE RUBBER

The provisions of section 37 of the Sale of Goods Act, 1930 (in short "the Act") are having applicability to the present case which speak about delivery of the wrong quantity.

Section 38 of sale of goods act defines Instalment deliveries.

(1) Unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by instalments.

(2) Where there is a contract for the sale of goods to be delivered by stated instalments which are to be separately paid for, and the seller makes no delivery or defective delivery in respect of one or more instalments, or the buyer neglects or refuses to take delivery of or pay for one or more instalments, it is a question in each case depending on the terms of the contract and the circumstances of the case, whether the breach of contract is a repudiation of the whole contract, or whether it is a severable breach giving rise to a claim for compensation, but not to a right to treat the whole contract as repudiated.

Section 39 of sale of goods act defines delivery to carrier or wharfinger.

1) Where, in pursuance of a contract of sale, the seller is authorised or required to send the goods to the buyer, delivery of the goods to a carrier, whether named by the buyer or not, for the purpose of transmission to the buyer, or delivery of the goods to a wharfinger for safe custody, is prima facie deemed to be a delivery of the goods to the buyer.

(2) Unless otherwise authorised by the buyer, the seller shall make such contract with the carrier or wharfinger on behalf of the buyer as may be reasonable having regard to the nature of the goods and the other circumstances of the case. If the seller omits so to do, and the goods are lost or damaged in course of transit or whilst in the custody of the wharfinger, the buyer may decline to treat the delivery to the carrier or wharfinger as a delivery to himself, or may hold the seller responsible in damages.

(3) Unless otherwise agreed, where goods are sent by the seller to the buyer by a route involving sea transit, in curcumstances in which it is usual to insure, the seller shall give such notice to the buyer as may enable him to insure them during their sea transit, and if the seller fails so to do, the goods shall be deemed to be at his risk during such sea transit.

Section 40 defines risk where goods are delivered at distant place.

Where  the seller of goods agrees to deliver them at his own risk at a place other than that where they are when sold, the buyer shall, nevertheless, unless otherwise agreed, take any risk of deterioration in the goods necessarily incident to the course of transit.

G.N BEHERE V. M/S. NANAGRAM BHIKAMCHAND RICE MILLS FIRM AND ANOTHER

This section also shows that although the seller undertakes to take the goods at his own risk to a place other than that where they are when sold, if any deterioration lakes place in the course of the transit, the buyer would be liable for, it. Whether there was any deterioration for which the buter would have been liable or not within the meaning of section 40 could only have been determined after delivery had been taken and it cannot be said that under no circumstances the buyer was bound to re- fuse delivery of the goods as soon as he found that the goods were in a damaged condition