9911796707
TMI Blog1994 (4) TMI 380X X X X Extracts X X X X X X X X Extracts X X X X ..... nsactions are relatable to inter-State sales. The period relates to the assessment year 1993-1994. The State Government realizing the difficulty in the matter of determining whether a particular transaction is in the course of inter-State sales or not, have issued G.O. Ms. No. 423, dated December 31, 1993 remitting the sales tax collected in respect of such transactions during the assessment years 1987-1988 to 1992-1993. The said G.O. reads thus: The SC CCT issued circular instructions to the assessing officers on the interpretation of section 3(2) of the Central Sales Tax Act, 1956 read with explanation 1 to section 3(b) of the same Act. The SC CCT in the circular pointed out that in view of the decision of the Delhi High Court repo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ip to them, as cases on the assessments already made and the stand already taken by the department they have not collected any tax and any new policy in this regard will hit then hard. 3.. The Government in consultation with the SC CCT examined the matter. The Government are of the opinion that Explanation 1 to section 3(b) does not permit unlimited time for the trade to bring the goods and keep them indefinitely and then effect sales and claim the same as one falling under section 6(2) of the Central Sales Tax Act, 1956 read with Explanation 1 of section 3(b) of the Central Sales Tax Act, 1956 and not liable to tax. But, at the same time, the Government have also to consider that the trade is to be given some time after the arrival of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and any sale taking place after 40 days and failing under section 6(2) read with 3(b) shall be treated as local sales in view of the fact that such sales can be local sales after constructive delivery of the goods by the carriers . 5.. As to the sale or purchase of goods taking place in the course of interState trade from April 1, 1993, paragraph 4(c) of the G.O. extracted above gives to the dealers 40 days from the date of arrival of the goods to effect subsequent inter-State sales as per section 6(2) read with section 3(b) of the Central Sales Tax Act, 1956 (for short C.S.T. Act). However, such subsequent sales falling under section 6(b) read with section 3(b) of the C.S.T. Act, taking place after the expiry of 40 days from the date of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them in respect of the transactions taking place from April 1, 1993 by permitting 40 days from the date of arrival of goods to effect subsequent sales in the course of inter-State trade or commerce, if they are able to show that such sale has taken place within 40 days from the date of arrival of the goods, they would be entitled to the benefit that is available to them under sub-section (2) of section 6, read with section 3(b) of the C.S.T Act. If the sale does not take place within 40 days from the date of arrival of the goods, it will still be open to then to prove that such sale of goods was in the course of inter-State trade or commerce and not a local sale. Therefore, we are of the view that the present provisional demands and also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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