9911796707
TMI Blog2001 (2) TMI 992X X X X Extracts X X X X X X X X Extracts X X X X ..... effected by the petitioner in the course of inter-State trade or/and commerce? The disputes arose on the facts stated infra. 3.. The petitioner is a dealer as defined under the M.P. General Sales Tax Act (since repealed) as also under the Central Sales Tax Act. It is engaged in the business of manufacture and sale of machinery parts. The petitioner also undertakes the execution of job-work of various parties having their place of business out of State of M.P., who supply raw material to the petitioner and in turn the petitioner manufactures their parts according to their specifications and requirements and supply them as per terms and conditions of the contract. 4.. One such party for whom, the petitioner had undertaken the job-work w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of the Central Sales Tax Act, by passing an assessment order dated February 28, 1994 for Central sales tax (annexure A). The petitioner felt aggrieved of assessment order only in so far as it related to imposition of Central sales tax on the purchase of speed rings was concerned, filed a revision before the Deputy Commissioner (Sales Tax). The learned revisionary authority by its order dated February 1, 1995 (annexure B) dismissed the revision and upheld the assessment order. In other words, the learned revisionary authority too was of the view while affirming the finding of the assessing officer that petitioner is in the facts of this case liable to pay Central sales tax on the goods used in execution of works contract and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hin the net of tax consequent upon the introduction of clause (29A), then as a necessary corollary, the Parliament should have amended the definition of "sale" as defined under section 2(g) of the Central Sales Tax Act, 1956 so as to empower the authorities to tax inter-State sales effected in execution of works contract. It was urged that mere introduction of clause (29A) in article 366 of the Constitution does not give any right to tax inter-State transaction under the Central Sales Tax Act unless the definition of "sale" is suitably amended. On this principal submission, learned counsel urged that both the authorities erred in holding that the petitioner is also liable to pay Central sales tax on certain purchases said to have been made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Their Lordships of the Supreme Court had the occasion to interpret this section 3 in number of cases. It was held that if the movement of goods from one State to another is the result of a covenant or an incident of contract of sale, then in that event, the sale is an interState sale. It was held that if the contract of sale itself contains a stipulation for movement of goods from one State to another then no difficulty arises in holding that the sale is inter-State sale. It was further held that even where it is not so provided by the contract but such movement is the result of covenant or is an incident of contract, it will be an inter-State trade-Union of India v. K.G. Khosla and Co. Ltd. [1979] 43 STC 457 (SC), Oil India Ltd. v. Super ..... X X X X Extracts X X X X X X X X Extracts X X X X
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