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TMI Blog2009 (4) TMI 955X X X X Extracts X X X X X X X X Extracts X X X X ..... Application No. 3 of 2002 and Reference Application No. 4 of 2002 in terms of the following observation made in paragraph 11 of the impugned judgment, which reads as under: "... Thus, the findings recorded by the Tribunal that the sales occasioned the movement of goods into the country and are hence covered under the first limb of section 5(2) of the Central Act are findings based on analysis of facts which are on record." The Department has sought to levy sales tax on sales made by M/s. Tata Iron & Steel Co. Ltd. (TISCO) in favour of Indian buyer(s) which was challenged by the respondent-assessee on the ground that the said sales had occasioned the import and, consequently, they fell within the first limb of section 5(2) of the Central S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contract between the Indian importer and its customer in India for import of goods to be supplied to the Indian buyer, the contract would come within the first limb of section 5(2) of the 1956 Act. As against this argument, Shri Dholakia, learned counsel appearing for the Department, submits, on the facts of the case, that in this case, the Indian buyer was promised by TISCO, the assessee, to procure goods from USA. According to the Department, the two contracts, referred to above, were not inextricably interlinked. According to the Department, TISCO was the only supplier of the goods to the Indian buyer. The only obligation undertaken by TISCO was to arrange for imports from abroad. Therefore, according to the Department, the sales effe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has succeeded in showing that the sales stood covered under the first limb of section 5(2), it was not necessary to examine the question as to whether such sales stood exempted under the second limb of section 5(2). However, since we are of the view that an important question of law arises in the facts and circumstances of the case, as indicated hereinabove, the High Court shall also consider whether such sales were exempt in any event under the second limb of section 5(2) of the 1956 Act. For the aforestated reasons, the Department's appeal stands allowed. The matter stands remitted to the High Court for its decision in accordance with law and in accordance with the directions given hereinabove. No orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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