2006 (10) TMI 410 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to order of Sales Tax Appellate Tribunal regarding exemption claim under section 6A of Central Sales Tax Act for assessment year 1994-95.

Analysis:
The petitioner, a registered dealer dealing in oil and oil cake, claimed exemption under section 6A of the Central Sales Tax Act for the assessment year 1994-95. The assessing officer rejected the exemption claim, a decision upheld by the appellate authorities, leading to the writ petition challenging the order of the Sales Tax Appellate Tribunal. The main question raised was whether the movement of goods was for consignment transfer or inter-State sale. The Tribunal highlighted discrepancies in the form F serial numbers but did not consider other particulars for acceptance or rejection, failing to provide a conclusive finding on the nature of the transaction.

The judgment emphasized that section 6A of the Central Sales Tax Act must be read in conjunction with section 6, which defines liability for inter-State sale tax. The amendment to section 6A during the relevant period was not applicable to establish liability based on the created fiction. Despite discrepancies in form F and serial numbers, no clear finding was given on whether the movement of goods was due to a sale. The judgment referenced the case law of Ashok Leyland Ltd. v. State of Tamil Nadu to highlight the importance of a thorough enquiry into the form F declaration, which was lacking in this case. Consequently, the matter was remitted back to the assessing authority for a reconsideration based on relevant provisions of the Act to determine the correctness of the exemption claim or whether the sale occasioned the movement of goods from one State to another.

In conclusion, the impugned order was set aside, and the assessing authority was directed to reevaluate the issue considering the available materials and to make a decision in accordance with the law and the guidance provided in the judgment. No costs were awarded in this matter.