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TMI Blog1983 (8) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... x Act, (2) a sum of Rs. 27,722 in respect of which the assessee claimed exemption from tax on the ground that the goods have been imported through post parcel from England to the assessee, and (3) a sum of Rs. 87,096 which represented sale in the course of import of the goods by ship. As regards the first item, it is seen that the assessee purchased batteries from Lucas Indian Service Ltd., Calcutta, which it later sold the same in entirety to Lucas Indian Service Limited, Madras, before the goods were delivered by the carrier after transporting the goods from Calcutta to Madras. In respect of this turnover, the assessee claimed exemption from tax under section 6(2) of the Central Sales Tax Act. As regards this claim the assessing authority held that the assessee and Lucas Indian Service Limited, Calcutta, are sister concerns situate in adjacent premises, and therefore, there in no reason as to why the assessee went through the formality of purchasing the goods from Calcutta and selling the same to Lucas Indian Service Limited, Madras. He also took the view that since the carrier had agreed to effect door delivery, there was no practical significance in endorsing the lorry wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Tribunal will indicate that there was no valid transfer of documents of title to the buyer while. The goods were in the inter-State movement. In fact, the facts as found by the Tribunal clearly lead to the inference that there was a transfer of documents of title to the buyer while the goods were in the inter-State movement. As a matter of fact, the goods were actually delivered to the buyer on 9th January, 1975, as seen from the invoice issued by the carrier for freight charges, which contains an endorsement of the delivery of the goods to the buyer. This delivery was in pursuance of the sale bill admittedly issued by the assessee on 7th January, 1975, with a covering letter to the carrier that the goods are to be delivered to the buyer. In this case the revenue has not challenged the genuineness of the assessee's sale bill issued to the purchaser on 7th January, 1975. It is also not disputed that on the basis of the said bill dated 7th January, 1975, the buyer has taken delivery of the goods from the public carrier on 9th January, 1975. Inter-State movement from Calcutta to Madras stood terminated only on the delivery of the goods and long before the termination of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) of the Central Sales Tax Act the Supreme Court has observed: "The sale contemplated by clause (b) is one which is effected by transfer of documents of title to the goods during their movement from one State to another. Where the property in the goods has passed before the movement has commenced, the sale will evidently not fall within clause (b); nor will the sale in which the property in the goods passes after the movement from one State to another has ceased to be covered by the clause. Accordingly a sale effected by transfer of documents of title after the commencement of movement and before its conclusion as defined by the two termini set out in explanation (1) and no other sale will be regarded as an inter-State sale under section 3(b)." We cannot, therefore, agree with the view taken by the Tribunal in this case. We are of the view that the turnover of Rs. 1,34,029.98 is liable to be exempted under section 6(2) of the Central Sales Tax Act, as claimed by the assessee. Coming to the second item of turnover which represents the import transactions of goods by post parcel from England, the facts as found by the Tribunal are these: The assessee purchased certain g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " has been defined in section 2(4) of the Sale of Goods Act as meaning a bill of lading, dock-warrant, warehouse-keeper's certificate, wharfinger's certificate, railway receipt, warrant or order for the delivery of goods, and any other document used in the ordinary course of business as proof of the possession or control of goods, or authorising or purporting to authorise, either by endorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented. Though the said definition is an inclusive one and cannot, therefore, be said to be exhaustive, we are not in a position to agree with the learned counsel for the assessee that an intimation of receipt of post parcel by the post office will come within the definition of "document of title to goods". Such an intimation received from the post office by itself cannot enable the assessee to transfer or receive the goods referred to therein. The intimation will not amount to a document of title. It is no doubt true, in this case the buyer took delivery of the goods on the basis of the endorsement made in the intimation sent by the post office. But that is only as an agent of the assessee and not as o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... customs frontier on 2nd November, 1974, the import movement should be taken to have been terminated on that day. It is no doubt true that the assessee has transferred the bill of lading to the buyer on 18th October, 1974. But the said transfer was at a time when he had no valid licence to import, the period of validity of the import licence held by the assessee having expired by then. Though the assessee has in fact transferred the bill of lading in favour of the buyer, that transfer is of no avail and it will not confer any title to the goods on the buyer as the assessee who transferred the bill of lading had no subsisting authority to import and to pass title to the buyer by transferring the bill of lading. Though the assessee got extension of the period of licence subsequently, admittedly he had no valid licence to import on 18th October, 1974, when the bill of lading is said to have been transferred by the assessee to the buyer. The learned counsel for the assessee submits that the subsequent extension of the period of the import licence should relate back to the date of expiry of the period of licence, and therefore, the assessee should be presumed to have the power to trans ..... 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