9911796707
TMI Blog1993 (2) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... iod October 25, 1984 to November 12, 1985. According to the petitioner, the goods were delivered in the State of Karnataka itself and the purchaser took possession of the same, as can be seen from the signatures of the purchaser's representative in the aforesaid bills. However, in the course of the assessment for the period in question the assessing authority held that the aforementioned sales were interState sales as the goods were despatched by the petitioner as part of the sale transactions. The petitioner's appeals to the appellate authority as well as to the Appellate Tribunal were not successful. Hence this revision petition. 2.. We may also note that to some extent of the quantum of turnover the first appellate authority had grante ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inferred that the seller had despatched the goods as part of the sale bargain. It is also quite possible that the numbers were mentioned on behalf of the purchaser after the completion of the sale and possession was taken on behalf of the purchaser. These entries could have been made for the purpose of transportation on behalf of the purchaser. 6. The petitioner pointed out that having regard to the relationship between the seller and the purchaser, the return of the goods in one instance cannot be a ground to hold that sale was not completed earlier. A good businessman, to maintain his goodwill, may accept return of the goods sold by him and this fact cannot be ignored by the court. The principle applicable to the fact-situation has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , goods were manufactured at Faridabad according to specifications mentioned in the contracts. This, therefore, is not that type of case in which goods are manufactured in the general course of business for being sold as and when offers are received by the manufacturer for their purchase. Contracts of sale were finalised in the instant case at Delhi and specific goods were manufactured at Faridabad in pursuance of those contracts. Those were 'future goods' within the meaning of section 2(6) of the Sale of Goods Act, 1930. After the goods were manufactured to agreed specifications, they were despatched to the head office at Delhi for being forwarded to the respective customers at whose instance and pursuant to the contracts with whom the goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at any rate it was a necessary incident to the contract. 9.. The position is made clear by the Supreme Court in Commissioner of Sales Tax v. Suresh Chand Jain [1988] 70 STC 45. At page 47 the court observed thus: "The principles of inter-State sales were well-settled. In Bengal Immunity Company Limited v. State of Bihar [1955] 6 STC 446 (SC) justice Venkatarama Ayyar had held that sale could be said to be in the course of inter-State trade only if two conditions concur, namely, (1) a sale of goods and (2) a transport of those goods from one State to another. Unless both these conditions were satisfied, there could be no sale in the course of inter-State trade. There must be an evidence that the transportation was occasioned by the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessees and their customers. The existence of T.P. form IV was taken note of but that did not conclude the matter." The above observation makes it clear that there must be evidence that the transportation was occasioned by the contract and as a result goods moved because of the bargain between the parties, from one State to another and that the onus lies on the Revenue to disprove the contention of the appellant that it was not an inter-State sale. In Bhoorey Khan Glass Bangle Factory v. Commissioner, Sales Tax [1974] 34 STC 332 the Allahabad High Court applied the same principle and pointed out that if the seller despatches the goods after the sale as per the instructions of the purchaser and such a despatch was not part of the bargai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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