2003 (9) TMI 725 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to order of Joint Commissioner of Taxes under Assam General Sales Tax Act, 1993 and Assam Finance (Sales Tax) Act, 1956 for rejecting claim of inter-State sale.

Analysis:
The writ petitioner, a registered dealer, challenged the order rejecting their claim of inter-State sale to a sister concern based on the absence of agreement for dispatch of goods outside the State and non-submission of C form. The assessing officer raised tax demand and interest, which was upheld by the Joint Commissioner without providing reasons for the decision.

The High Court observed that for a sale to be considered inter-State, two essential elements must be present: movement of goods between states and transfer of title supported by documents. In this case, goods were moved to other states with proper documentation. The court emphasized that maintaining a stock book indicates a proper account of sales, distinguishing it from a local sale as per the Central Sales Tax Act, 1956. The absence of C forms should not solely determine the nature of the sale.

It was noted that the assessing officer and the revisional authority failed to consider crucial factors while passing the order, leading to errors in assessment. The revisional authority did not provide reasons for dismissing the petitioner's submission. Consequently, the court quashed the orders and remitted the matter back to the assessing officer for fresh disposal in accordance with the law.

In conclusion, the High Court allowed the writ petition, disposing of the matter without any costs, and directed the assessing officer to reevaluate the claim of inter-State sale based on the provisions of the Central Sales Tax Act, 1956.