9911796707
TMI Blog2013 (3) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... me, after giving an opportunity of hearing to the person and pass appropriate orders, on merits and in accordance with law, based on material facts and the objections made thereon. Such a course is not adopted in this case and the petitioner submitted that in view of the said clarification letter, dated 21.8.2002, the petitioner-Company is claiming that they are manufacturing goods and carry on only stock transfer from one branch to the other branch of another State, which cannot be termed as Inter-State sale and the tax could not be levied and they claim exemption, and therefore, the petitioner is prepared to make their objections before the competent authority in respect of the notice issued to the petitioner-Company by the respondents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Limited Company and an assessee on the file of the first respondent. They have got 27 branches located all over India. The product of the petitioner, namely Lift cannot be manufactured as finished goods straightaway and erect it at the customer's site. The parts and accessories of the Lift are manufactured at the factory of the petitioner in Chennai and thereafter, they are moved to the branches of the petitioner-Company located outside the State of Tamil Nadu. The branches take physical delivery of the same and execute the work of erecting the Lift at the site of the customer. In respect of deemed sales taking place, the branches of the petitioner located in places outside the State of Tamil Nadu, pay the applicable taxes under the wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nthly Returns in Form 1 for the months from April 2003 to December 2003, claiming exemption on the sales made to the other States as Branch Transfer. The verification of the statement containing the bill-war details annexed to the Return revealed that the petitioner transferred Lift components for execution of the works contract directly to the customers' site in the other States against work order and also furnished job numbers and claimed exemption as Branch Transfer. As per the Finance Act, 2002 enacted by the Parliament with effect from 13.5.2002, the works contract transactions are treated as Inter-State sales under the CST Act and the movement of goods to the other States for use in execution of the works contract, is taxable unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her hand, Mr.A.R.Jaya Prathap, learned Government Advocate appearing for the respondents 1 and 3 and Mr.P.Mahadevan, learned Central Government Standing Counsel appearing for the second respondent submitted that the manufacturer has transported the Lifts from the place of manufacture to the other branches in India based on the works contract and furnished job numbers and the exemption so claimed as Branch Transfer, cannot be considered under the Finance Act, 2002, because, as per the CST Act, any transfer from the manufacturing place to the branches in the other States, would be treated as Inter-State sale and therefore, the petitioner-Company is liable to pay tax. 7. Heard the learned counsel appearing for the parties and perused the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -IV/44305/2002, dated 21.8.2002 to one of the Lift companies, stating that the movement of components and parts of Lifts fabricated in Tamil Nadu and despatched to the other States by the Company as stock transfer for installation in a building in the Other State, is not taxable in Tamil Nadu under the CST Act, provided they obtain Form-F from the other State branch. 11. It is claimed by the petitioner-Company that they have complied with the requirements as per law by producing necessary documents and details, and therefore, the respondents are bound to consider the same and in such event, the assessing authority may disallow the claim of exemption and assess the turnover at the appropriate rate applicable locally, provisionally under t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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