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TMI Blog2002 (9) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... 's place. At the request of the assessee, the supplier sent the goods to Valparai under cover of invoice in favour of the assessee and sent E1 form to the assessee to claim exemption on subsequent inter-State sale under section 6(2) of the Central Sales Tax Act, 1956. The assessee also issued C form obtained from Kerala for the purchase made to Calcutta party. After such purchase, the assessee made sale to Tata Tea Ltd., and claimed exemption under section 6(2) of the Central Sales Tax Act, 1956. Though sale by endorsement of title to goods (LR) is not admitted by assessee, such sale has to be presumed because the assessee claimed exemption under section 6(2) on their sale to Tata Tea Ltd., which is possible only after sale by endorsement o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sued. Going by the assessment order, it is clear that the assessee maintained the claim of exemption under section 6(2) by producing E1 form. It is only when proposal for assessment was made proposing disallowance of exemption claimed by the assessee under section 6(2), that the assessee changed the stand from subsequent inter-State sale under section 6(2) to that of local sale in Tamil Nadu. A local sale in Tamil Nadu arises only when the assessee has gone from Kerala, taken delivery of goods at Valparai and delivered the same to the buyer, in which case there was no need for the assessee to have put up a claim of subsequent inter-State sale under section 6(2) at the time of filing the return and claiming exemption in the return itself. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivery at Tamil Nadu. In the course of movement of the goods from West Bengal to Tamil Nadu, the petitioner obviously made subsequent sale by endorsing the L.R. in favour of the ultimate buyer, i.e., Tata Tea Ltd. Therefore, this is a case of two sales in the course of movement of goods from one State to another. The transactions are: (1) sale under section 3(a) from the Calcutta-supplier to the assessee and (2) sale under section 3(b) by the assessee to their buyer, i.e., Tata Tea Ltd. The assessing officer rejected the claim of exemption put forward by the assessee under section 6(2) of the Central Sales Tax Act, 1956 which entitles a subsequent inter-State seller for exemption when goods are sold by endorsement of title to goods provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me goods and being also a sale which does not fall within sub-section (2) of section 6, the tax shall be levied and collected,- (a) Where such subsequent sale has been effected by registered dealer, in the State from which the registered dealer obtained or, as the case may be, could have obtained, the form prescribed for the purposes of clause (a) of sub-section (4) of section 8 in connection with the purchase of such goods, and, (b) Where such subsequent sale has been effected by an unregistered dealer, in the State from which such subsequent sale has been effected. .......................". Section 9(1) provides that the tax is payable in the State wherefrom the movement of the goods commenced. However, when an assessment is to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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