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TMI Blog1972 (7) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... ver has escaped assessment. The petitioner has some depots particularly in Calcutta and Bombay. But it carries on business in the State of Tamil Nadu. The petitioner-mills was originally assessed to Central sales tax by an order of the joint Commercial Tax Officer, Singanallur Division, Coimbatore, on 14th December, 1967. From the records it is seen that the assessing officer went into the account books, the sale bills and all other necessary materials and granted exemptions in the matter of payment of Central sales tax on the foot that certain sales were made outside the State. Later, the petitioner was informed once again by the assessing authority by a notice dated 24th January, 1970, that the turnover in respect of which exemption was g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the materials so produced, but without agreeing with the petitioner and negativing all the objections to the proposal to revive, the respondent passed the impugned order on 24th April, 1970. Fairly enough, the respondent has summarised the gist of the documents produced before him at the time of the purported revision. The documents produced showed the course of transactions as follows: (1) Bulk quantities of yarn were despatched by Radhakrishna Mills Ltd., Coimbatore. (2) The goods were despatched to the Radhakrishna Mills Ltd., Calcutta, and not to any particular person or buyer. (3) The goods were cleared by their agents at Calcutta and expenses were debited to them. (4) After clearance, the goods were sold at the discretion of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng authority was under a misconception that the dealings between the petitioner-mill on the one hand and its depot agents at Calcutta, Bombay and other places on the other projected a relationship of a seller and a buyer, and in consequence, those transactions of sales are inter-State sales liable to tax under the Central Sales Tax Act. I have already referred to the synopsis of facts as rendered by the revising authority himself. It shows that at no time the goods moved from the State of Tamil Nadu for the purpose of satisfying a definite contract and for the purpose of which goods so despatched had been delivered to a particular known person under a defined contract. The course of transaction appears to be that the depot agent, having reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce to his principals in the State of Tamil Nadu. There is therefore, undoubtedly an intra-State sale in the State of West Bengal and certainly an out of State sale so far as the State of Tamil Nadu is concerned. Two decisions were placed before me by Mr. C.S. Chandrasekhara Sastry, learned counsel for the petitioner, which almost clinch the issue. In English Electric Company of India Ltd. v. Deputy Commercial Tax Officer[1969] 23 S.T.C. 32., a Division Bench of this Court, to which I was a party, had occasion to deal with a case where despatches were made from the State of Tamil Nadu to Bombay. But the distinguishing feature which distinguishes that case from the instant case is that the buyers have been apprised of the correct position a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the buyer's contract. The petitioner does not know to whom the goods are going to be supplied pursuant to the contract entered into between the depot agent at Calcutta and the buyer. There is no nexus between the movement of goods and the contract of purchase by such a buyer. There is no ascertainment of the goods at this end, and it is admitted that the appropriation and ascertainment are made in the State of West Bengal. All these elements which are not disputed are sufficient to hold that the sales in question are out of State sales and which the first assessing authority rightly appreciated and granted the legal exemption to tax to the petitioner. To a similar effect is the decision in Cement Distributors (P.) Ltd. v. Deputy Commer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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