9911796707
TMI Blog1997 (11) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... s, coming within the jurisdiction of Deputy Commercial Tax Officer, Peddunaickenpet (South) Assessment Circle, Madras-1. The total and taxable turnover of the assesseedealers were determined at Rs. 5,54,219 and Rs. 3,85,000 respectively by the assessing officer. In respect of the taxable turnover to the tune of Rs. 3,85,000, it is said, the assessee-dealers purchased plywoods from a registered dealer at Arunachala Pradesh, wherein the goods, viz., plywood is stated to be exempt from tax. It appears, the assessee-dealers effected further sales, while the goods were in transit to another registered dealer at Madras. The assessing officer taxed the inter-State sale to the tune of Rs. 3,85,000 at the hands of the assessee-dealers at 4 per cent, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pute that the said Arunachala Pradesh dealer effected the despatch of the said goods as requested for by the assessee-dealers. Equally, it is also not in dispute that the assessee-dealers effected a subsequent sale of the said goods, while they were in transit to another registered dealer at Madras. The moot issue covering the question as framed above is as to whether such a subsequent sale, on the facts and in the circumstances of the case, is exempt from tax under C.S.T. Act falling under the sanguine and statutory provisions adumbrated under section 6(2)(a) of the CST Act. 7.. For answering the ticklish issue so posed, better it is, for us to understand the scheme of taxation in CST Act, relatable to inter-State sale or purchase of goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties. According to sub-section (1) thereof, the tax is to be levied by the Government of India and the tax so levied shall be collected by the Government in accordance with the provisions of sub-section (2) in the State from which the movement of goods commenced. (b) A proviso thereto is also appended and the said proviso prescribes certain parameters or conditions required to be fulfilled before ever the appropriate State Government inheres the power to tax a subsequent inter-State sale. The subsequent sale must have to be happened during the movement of goods from one State to another and that apart, such a subsequent sale does not fall within sub-section (2) of section 6. (j) If these two conditions are satisfied, the proviso gives ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch state of affairs, the assessee-dealers could not be expected to furnish relevant materials for getting exemption under section 6(2). 10.. In this view of the matter, we rather feel, in the interests of justice, the case has to be remitted back to the assessing officer to have a fresh look into the matter in the light of what we have observed above. We, therefore, set aside the orders of all the authorities below, inclusive of the Tribunal and remit the case back to the assessing officer to consider the matter afresh, as we have indicated above. 11.. Before parting with this matter, we desire to pen down here the able assistance rendered by Mr. C. Natarajan, learned Senior Counsel. We procured the amicus curiae assistance of Mr. C. N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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