9911796707
TMI Blog1988 (5) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... ws: The Dharangadhara Chemical Works Ltd. is a manufacturer of Caustic Soda and certain other chemicals. Dharangadhara Chemicals Works Ltd. (referred to hereinafter as "the Chemical Company") entered into an agreement dated 9th August, 1957 under which it agreed to sell all its products to Dharangadhara Trading Co. Pvt. Ltd. (referred hereinafter as "the Trading Company"). Under clause 1 of the said agreement, the Chemical Company agreed to confine the sale of all the products manufactured by it at all its works to the Trading Co. for a period of 5 years from the 1st day of March, 1958. Clause 2 of the agreement provided, the Chemical Co. would make the sales directly to the Trading Co. on a principal to principal basis against offers or in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified quantities. The mode in which sales were made was that the Trading Co. obtained orders from out of State buyers and entered into agreement of purchase with the Chemical Co. for these specified quanities. All the goods sold under these contracts of sale were booked at the aforesaid railway station in Tamil Nadu to the various places outside the State of Tamil Nadu where buyers from the Trading Co. required the goods and after the goods were booked as aforesaid on the railway, the railway receipts and the invoices concerned were endorsed and handed over to the Trading Co. Admittedly, as pointed out by the Tribunal, there were two sets of sales, one by the Chemical Co. to the Trading Co. and the second by the Trading Co. to the vari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals. The Tribunal pointed out that there were two sets of sales, the second set of sales by the Trading Co. to out of State buyers was admittedly inter-state in character. The Trading Co. had filed necessary `E-1' forms and 'C' forms in these cases and the transactions, therefore, fell within the scope of Section 6(2)(B) of the Central Sales Tax Act and were exempt from tax under local Sales Tax Act as well as the Central Sales Tax Act. As far as first set of sales, namely, by the Chemical Co. to Trading Co. were concerned, it was pointed out that although under the agreement dated 9th August, 1957 the sales were agreed to be 'F.O.R. Booking Stations' and the booking station was in Tamil Nadu, the delivery of goods could be either by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecified goods to out of station buyers, and the Chemical Co. never give physical delivery of the goods to the Trading Co., but booked the goods to the destinations as required by the out of state buyers and merely handed over documents of title to the Trading Co. It was clear that the movement of the goods from the State of Tamil Nadu to the outside States was occasioned by the terms of the contract themselves and the sales were inter-state sales falling within Section 3, Sub- section (a) of the Central Sales Tax Act, 1956. Alternatively, if a view were taken that the sales did not fall under Sub-section (a) of Section 3, the deliveries of goods sold were effected by the transfer of documents after the movement of the goods from Tamil Nadu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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