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TMI Blog1961 (7) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... m taxation. Paragraph 2 of the orders of the Appellate Assistant Commissioner in Sales Tax Appeal No. 75 of 1958 (T.R.C. No. 47 of 1960) and Sales Tax Appeal No. 398 of 1959 (T.R.C. No. 48 of 1960) are identical in wording and reads as follows: "The turnover disputed relates to sales effected to parties in Madras State. The mode of transaction is as follows. The parties place orders with the appellant orally or through correspondence. The terms of sale are F.O.R., Quilon, Punalur, Edamon, or some other railway station in the State. Pursuant to these orders goods are booked by the appellant in railway wagons at the station mentioned. The railway receipts are obtained 'self' in some cases, and in the name of the non-resident buyers in other c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act, 1956. Section 3 of the latter Act provides: "A sale or purchase of goods shall be deemed to take place in the course of inter-State trade or commerce if the sale or purchase(a) occasions the movement of goods from one State to another; or (b) is effected by a transfer of documents of title to the goods during their movement from one State to another. Explanation 1.-Where goods are delivered to a carrier or other bailee for transmission, the movement of the goods shall, for the purposes of clause (b), be deemed to commence at the time of such delivery and terminate at the time when delivery is taken from such carrier or bailee. Explanation 2.-Where the movement of goods commences and terminates in the same State it shall not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Madras, or, in other words, as sales in the course of inter-State trade or commerce. We are not prepared to agree. 7.. The connection between the F.O.R. sales at a railway station in this State for a destination outside this State and the movement that follows the delivery to the common carrier is so intimate and real that we cannot but hold that the movement is occasioned, caused, or brought about by the sale, and that the sales should be considered as sales in the course of inter-State trade or commerce. The position appears to us to be beyond controversy and we think it unnecessary to deal with all the decisions cited before us. 8.. In State of Travancore-Cochin and Others v. The Bombay Company Ltd., Alleppey, and Others(1), the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kes place in the course of the export of the goods concerned." The phrase "integrated activities" used in State of TravancoreCochin v. The Bombay Company Ltd.[1952] 3 S.T.C. 434; A.I.R. 1952 S.C. 366. was further considered and explained as follows in State of Travancore-Cochin v. Shanmugha Vilas Cashewnut Factory [1953] 4 S.T.C. 205; A.I.R. 1953 S.C. 333. : "The phrase 'integrated activities' was used in the previous decision to denote that 'such a sale' (i.e., a sale which occasions the export) 'cannot be dissociated from the export without which it cannot be effectuated, and the sale and the resultant export form parts of a single transaction'. It is in that sense that the two activities-the sale and the export-were said to be integr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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