9911796707
TMI Blog1986 (12) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... is Court by the Tribunal in accordance with the direction given in the order dated October 21, 1976 of this Court in Reference No. 232 of 1975. The question of law referred accordingly for the decision of this Court is the following: "Whether, in the facts and circumstances of the case, the sale of two generating sets on foundation at Jaipur, amounted to sale in the course of interState trade?" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hase of these generating sets at Jaipur the buyer removed the same at its own expense to Bombay. Question arose of the exigibility of sales tax on this transaction. One of the contentions of the assessee which alone is now relevant was that it amounted to an inter-State sale which was required to be taxed at the concessional rate instead of being taxed as an intraState sale at the higher rate. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n incident of the contract. Unless the inter-State movement is shown to be connected with the contract in such a manner, the mere fact that the buyer was from outside the State and he moved the goods to a place outside the State after completion of the sale transaction without any involvement of the seller, cannot make it an inter-State sale. In other words, the seller's association with the inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... associated with anything connected even with the removal of the goods thereafter from Jaipur. The mere knowledge that the goods had to be removed by the buyer from Jaipur to Bombay cannot be treated as incident of the contract with the assessee. In my opinion, the decisions of the Supreme Court in State of Mysore v. Guduthur Thimmappa Son [1967] 19 STC 35; AIR 1967 SC 1131 and Balabhagas Hulasc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or it was a necessary incident of the contract, which is not the position in the present case. It follows that the sale of the two generating sets at Jaipur by the assessee did not amount to an inter-State sale and, therefore, the contrary view taken by the Board of Revenue was not justified. Accordingly the revision is allowed in this manner. In the circumstances of the case, there will be no ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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