1973 (8) TMI 144

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..... o Central sales tax in respect of those sales. The assessee denied his liability to tax under the Central Sales Tax Act and contended that the sales were intra-State sales. His contention was that sales were made to parties of U.P. and under their instructions the goods were despatched to places outside U.P. This contention of the assessee was not accepted by the Sales Tax Officer and he was assessed to tax under the Central Sales Tax Act. The assessee appealed and the appellate authority set aside the assessment order with a direction to the Sales Tax Officer to afford an opportunity to the assessee to lead evidence to prove his case that the sales were intra-State and not inter-State. The assessee appeared before the Sales Tax Officer in .....

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..... Now under section 3 of the Central Sales Tax Act 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. In the instant case it appears that the assessee entered into contracts of sale with dealers of U.P. but despatched the goods to places outside U.P. The goods were despatched by rail and the railway receipts were made out in the name of the assessee. Thereafter the railway receipts were endorsed in favour of the purchasers. The Judge (Revisions) Sales Tax has found that the despatch .....

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..... uyers and purchasers both belong to U.P. is also of no consequence. There can be an inter-State sale between two persons belonging to the same State if the goods move from one State to another as a result of a contract of sale or the goods are sold while they are in transit by transfer of documents. It is also immaterial as to where the property in goods passes from the seller to the purchaser. The question referred to us also relates to the rate of tax but the earned counsel for the assessee has stated that he does not dispute the rate of tax. We accordingly answer the question by saying that the sales in question were inter-State sales and were liable to tax under the Central Sales Tax Act. The Commissioner of Sales Tax is entitled to t .....

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