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TMI Blog1989 (7) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... k transfer at Rs. 2,10,100.62, but in fact, there were inter-State sales to that extent. He, accordingly, rejected the case of stock transfer and brought the inter-State sales at Rs. 2,10,100.62 to tax at the rate of 10 per cent. The assessee appealed to the Assistant Commissioner (Judicial), who agreed with the assessing officer that the assessee made inter-State sales in the garb of stock transfer. He was, however, of the view that each and every transaction is to be seen for determining the question whether there was stock transfer or inter-State sale. He therefore, held that all the transactions could not be said to be inter-State sales. Without specifying the transactions not amounting to inter-State sales, he in lump sum, reduced th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether there was an intention to avoid the tax-these questions are not at all germane to answer the question whether there was sale in the course of inter-State trade. Section 3 of the Central Sales Tax Act, 1956 (the Act, 1956), defining the inter-State trade, so far as material, is reproduced below: "3. 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." When there is a sale in the course of inter-State trade-answer of this question depends on whether a given transaction of sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat there was sufficient stock in Delhi to comply with these orders. The assessing officer has also given the details of the stock register of Delhi, which clearly show that the goods had been supplied to buyers immediately after having been received from the factory premises. The case of the Revenue is that the assessee did not possess sufficient stock in Delhi and that as and when orders were received the goods were being sent from Sahibabad to comply with those orders. In short the contention of the Revenue is that the movement of the goods was occasioned from the factory to Delhi directly pursuant to the orders received in Delhi and so there was a direct nexus and complete linkage between the orders received and the goods supplied from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sales always and there would be nexus between the two. In the transactions referred to by the Tribunal in the impugned order, the assessing officer has clearly shown that the goods were being sent or even manufactured in some cases only after the orders having been received. This situation is also corroborated by Delhi stock register. To disprove the nexus between the orders received and the goods sent from Sahibabad, the assessee should have established that there was adequate stock most of the time in Delhi and that the movement of the goods was never occasioned from the factory to Delhi office pursuant to any sale order. In Union of India v. K.G. Khosla and Co. Ltd. [1979] 43 STC 457, the Supreme Court held that it is not true to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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