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TMI Blog1986 (7) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... that the respondent-assessee is a dealer of iron and steel having its head office at Mandi Shiam Nagar, Bulandshahar, and branch office at Delhi. For the assessment years 1978-79, 1979-80 and 1980-81 no inter-State sales were admitted by the respondent-assessee but for the assessment year 1981-82 it disclosed its interState sales at Rs. 19,930.50. A survey of the business premises of the assessee was conducted on 31st March, 1982, when some account books and certain other papers were seized. From these documents the assessing authority inferred that the branch transfers shown by the assessee were not actually branch transfers to Delhi office but were inter-State sales exigible to Central sales tax. He, therefore, issued notice under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect the Tribunal to apply its mind and decide the appeals afresh in the light of the aforesaid decision. Mr. Bharatji Agarwal, learned counsel for the respondentassessee, on the contrary has vehemently resisted the contention raised on behalf of the Commissioner of Sales Tax and submitted that the facts of the aforesaid Supreme Court case are entirely different from the facts of the present cases and the principle laid down in the aforesaid decision cannot be applied and as such it is not necessary to send the matter back to the Tribunal. Before entering into the various contentions raised on either side I think it necessary to refer to the aforesaid Supreme Court decision. The facts of the Supreme Court case are that Sahney Steel and Pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate sales tax in Maharashtra, West Bengal and Tamil Nadu in respect of those goods. It claimed that there was only a transfer of stock from Hyderabad to the branches outside the State of Andhra Pradesh and that the sales effected to the customers by the branches were local sales in the respective States. The Commercial Tax Officer, Hyderabad, held the sales to be sales in the course of inter-State trade and made an assessment accordingly for the years in question. Before the Supreme Court the petitioner-company contended that when the registered office of the company at Hyderabad despatched the manufactured goods to its branch office it was merely a transfer of stock from the registered office to the branch office, and thereafter the moveme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yer. The registered office and the branch office do not possess separate juridical personalities. The question really is whether the movement of the goods from the registered office at Hyderabad is occasioned by the order placed by the buyer or is an incident of the contract. If it is so, as it appears no doubt to us, its movement from the very beginning from Hyderabad all the way until delivery is received by the buyer is an inter-State movement." In the cases in hand the modus operandi of the assessee's firm is that "saria and patti" are manufactured from blooms and ingots which are either sold in U.P. or taken to Delhi for sale. The goods move out of the factory on an excise gate pass in which the consignee is M/s. Swadeshi Metal Works ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cases in hand and as such the principle laid down in that case cannot be applied to the instant cases. Therefore, it would be futile to send the cases back to the Tribunal for afresh decision. The Tribunal after considering the materials on record in detail held that there existed a branch office of the assessee at Delhi, that it is the branch office at Delhi which sold the goods received from the head office to the buyers, that all the transactions of taking advance and transferring goods to the purchasers took place at Delhi and the payments made either through crossed cheques or drafts were entered in the account books at Delhi and encashed there; and that taking of advance in some cases in the name of branch office at Delhi and therea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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