2009 (12) TMI 857 - HC - VAT and Sales Tax

Whether the transactions effected by assessee are covered within section 6(2)(b) of the Central Sales Tax Act and not a local transaction, which is exigible to tax under the Tamil Nadu General Sales Tax Act? Held that - There is absolutely no material to take a different view than that of the Tribunal, so as to come to a conclusion that the movement of the goods has been broken at the end of the assessee and the assessee has subsequently sold the goods to the ultimate dealers in Tamil Nadu and as such the assessee is not entitled to the benefit of section 6(2) of the Act. This revisions are dismissed.

Summary

Issues:
1. Interpretation of section 6(2)(b) of the Central Sales Tax Act for transactions involving goods movement between states.
2. Claim of exemption under section 6(2)(b) based on transfer of documents of title during goods movement.
3. Assessment of turnover eligibility for exemption based on the nature of transactions.

Analysis:
1. The judgment concerns the interpretation of section 6(2)(b) of the Central Sales Tax Act regarding transactions involving the movement of goods between states. The court addressed the issue of whether the transactions in question fell within the purview of section 6(2)(b) or were local transactions subject to tax under the Tamil Nadu General Sales Tax Act.

2. The case revolved around the claim of exemption under section 6(2)(b) based on the transfer of documents of title during the movement of goods from one state to another. The assessing officer had disallowed the claim of exemption, arguing that the transactions did not meet the criteria of a sale in transit as defined under the Act. The Appellate Assistant Commissioner partially allowed the exemption claim, leading to an appeal before the Tribunal.

3. The Tribunal, after considering the materials on record, allowed the appeals by granting the exemption claimed under section 6(2)(b) for both assessment years. The court analyzed the reasons given by the assessing officer for disallowing the exemption claim, including the completion of the transaction at the assessee's premises and discrepancies in invoices. However, the court found that there was no material to support a different view than that of the Tribunal, concluding that the assessee was entitled to the benefit of section 6(2) of the Act.

In conclusion, the court dismissed the revisions filed by the Revenue against the orders of the Sales Tax Appellate Tribunal, upholding the decision that the transactions qualified for exemption under section 6(2)(b) of the Central Sales Tax Act. The judgment emphasized the importance of the transfer of documents of title during the movement of goods for claiming such exemptions, highlighting the need for compliance with the prescribed procedures to avail of the benefits under the Act.