1975 (3) TMI 113 - HC - VAT and Sales Tax

Summary

Issues:
1. Determination of taxable turnover under Central Sales Tax Act for the year 1963-64.
2. Appeal against the order of assessment by the Appellate Assistant Commissioner.
3. Further appeal to the Sales Tax Appellate Tribunal regarding inter-State sales.
4. Contention regarding the nature of sales and transportation of goods.
5. Examination of documents and correspondence to establish the sales process.
6. Consideration of conduct in obtaining C form certificates.
7. Reference to State of Madras v. B. Tavanappanavar case for determining inter-State sales.
8. Final decision dismissing the petition with costs.

The judgment involved a case where the petitioners, dealers in timber, had their taxable turnover determined under the Central Sales Tax Act for the year 1963-64. The assessing officer accepted the return but the petitioners appealed, claiming mistaken submission of turnover as inter-State sales. The Appellate Assistant Commissioner and Sales Tax Appellate Tribunal upheld the assessment, considering evidence that sales were made within the state. The petitioners argued that sales were made by their Calicut office, supported by documents like transport permits and delivery notes. However, the Tribunal found the sales were inter-State, as evidenced by the modus operandi detailed in a letter by the petitioners. The Tribunal also noted the collection of sales tax under the Central Sales Tax Act and the use of C forms from outside purchasers. The Court agreed with the Tribunal's decision, emphasizing the significance of C form receipt in determining inter-State sales based on the State of Madras v. B. Tavanappanavar case. The petition was dismissed, with costs awarded.