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TMI Blog1971 (8) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessments arose out of business and commercial dealings of the petitioners which are to be traced to a contract which I shall presently refer to. Some time thereafter, the respondent purporting to act under section 16 of the Madras General Sales Tax Act, sought to reopen the assessments made for the years 1962-63 and 1963-64 under the Central Sales Tax Act, 1956, as if those assessments ought to have been done under the Madras General Sales Tax Act, as according to the respondent, the transactions covered by those assessment orders made for the relevant years as above, were wrongly assessed under the Central Sales Tax Act, and as the transactions reflected in those orders of assessment were essentially intra-State in character and not i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very possible and available material for purposes of assessment was made available by the assessees to the original authority and there being no laches on the part of the assessees, no question in anywise whatsoever of reopening of a closed assessment on the foot that there has been an escapement in the matter of the quantum of tax or otherwise is warranted in law. It is not necessary for me to consider this latter contention, in the view I intend taking. Under the contract between the parties, which has been obviously entered into between the Chief Controller of Telegraph Stores, Calcutta, and the petitioners, there is a schedule which indicates as to what part the petitioners should play, while implementing the terms of the contract. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1959. The original authority, which dealt with the material placed before it, rightly in my view, came to the conclusion that a part of the turnover of the assessees, namely, the transactions in respect of which the goods were despatched from the State of Tamil Nadu to States outside it, pursuant to the contract entered into between the Chief Controller of Telegraph Stores, Calcutta, and the petitioners constituted inter-State sales which would attract levy of sales tax under the Central Sales Tax Act of 1956. Curiously enough, the respondent purporting to act under section 16 of the Madras General Sales Tax Act, which enables him to reopen a closed assessment "for any reason" has chosen to reopen the same on the ground that the transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ight not happen. This is a step taken or instruction given by way of guidance, by the Chief Controller of Telegraph Stores, Calcutta, to the Controller of Stores, Madras, to ensure that goods are treated, accepted and sealed by him. It means nothing more than that the Controller of Stores at Madras is just supervising the quality of the goods and as far as possible ensuring that the goods which are accepted generally by the department are being despatched by the assessees as manufacturers thereof. In fact, this cannot be deemed to be a term of the contract which has an impact on tax liability. The Controller at Madras is constituted as an intermediary for a particular purpose which has no relation to the contract of sale of the goods, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be deemed to have taken place in the course of inter-State trade or commerce as such a sale or purchase occasioned the movement of the goods from one State to another." In the instant case, the revenue is unable to explain as to why the goods moved from this State to another unless it be pursuant to the contract entered into between the Chief Controller of Stores, Calcutta, and the petitioners as sellers. I am therefore satisfied that the jurisdiction assumed by the respondent under section 16 of the Madras General Sales Tax Act, 1959, is not warranted in the instant case. I am not considering in the instant case, whether there was any reason for reopening the closed assessment or not, as I have already said that it is not necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X
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