9911796707
TMI Blog2014 (2) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... al Sales Tax Act; in T.C.(R).No.1960 of 2008, the assessment year under consideration is 1986-87 under the Tamil Nadu General Sales Tax Act; in T.C.(R).No.1961 of 2008, the assessment year under consideration is 1985-86 under the Tamil Nadu General Sales Tax Act; in T.C.(R).No.1962 of 2008, the assessment year under consideration is 1984-85 under the Tamil Nadu General Sales Tax Act; in T.C.(R).No.1963 of 2008, the assessment year under consideration is 1983-84 under the Tamil Nadu General Sales Tax Act; in T.C(R).No.1964 of 2008, the assessment year under consideration is 1986-87 under the Central Sales Tax Act. 3. The assessee herein is a manufacture of H.D.P.E., Woven Fabrics. It has its head office at Chennai and factory at Pondicherry. Orders were received by the assessee both in the head office as well as in its Pondicherry office for supply of H.D.P.E., Woven Fabrics. As far as the present case is concerned, we find that the assessee's office received orders from E.I.D., Parry (India) Limited, Madras, Shaw-Wallace, Madras, Kothari Madras Limited, Madras, Coramandel Campacs, Madras and Andhra Fertilizers, Andhra Pradesh etc., for supply of H.D.P.E., Sacks with inprinting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterials to be used, the bag size, tolerance, strength and branding, the quotations included the total price of the tax to be supplied by the assessee. Thus, the Assessing Officer pointed out that there was no separate contract for lamination, colouring, branding and stitching, as contended by the assessee and thus, in the absence of any separate contract, one and only conclusion was that the contract was only for supply of the laminated sacks and thus, the appropriation had taken place within the State; thus the sale was governed by Section 4(2)(c) of the Central Sales Tax Act assessable under the provisions of the TNGST Act. In the light of the facts thus found, the assessee being an unregistered dealer and having willfully failed to submit the returns and attempted to avoid or evade the tax, penalty was called for under Section 12(3) of the Tamil Nadu General Sales Tax Act. 6. Aggrieved by this, the assessee went on appeal before the Appellate Assistant Commissioner (CT), who allowed the appeal of the assessee by placing reliance on the decisions in the cases of M/s.Larsen and Toubra Ltd., Madras-2, vs. Joint Commercial Tax Officer, reported in 20 STC 150 and Indian Wood Produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fabric. Consequently, the Tamil Nadu Authorities have no jurisdiction to levy Tax under the provisions of the Tamil Nadu General Sales Tax Act and there was no question of levy of penalty too. 9. In considering the said contention, the Revisional Authority pointed out to the orders placed by the customers on the assessee that they were only for the supply of H.D.P.E., sacks at the required strength and size; that the assessee did not dispute the fact that out of the fabrics sent alone, the sacks were manufactured according to specifications of the assessee's customers. Considering the contract being one for supply of sacks, the Revisional Authority came to the conclusion that Section 4(2)(b) of the Central Sales Tax Act stood attracted, fabrics were brought into Tamil Nadu from Pondicherry and were converted into sacks laminated at branded only in Tamil Nadu. Thus, sacks manufactured to the specifications were delivered to the parties in Tamil Nadu and to the customers at various places outside the Tamil Nadu. In the light of the above, the Revisional Authority set aside the view of the Appellate Assistant Commissioner and thus restored the order of assessment. Aggrieved by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommence at the time of such delivery and terminate at the time when delivery is taken from such carrier or bailee. Explanation 2:- Where the movement of goods commences and terminates in the same State it shall not be deemed to be a movement of goods from one State to another by reason merely of the fact that in the course of such movement the goods pass through the territory of any other State." 12. Going by the said provision, it is clear that an appropriation for the purposes of an inter-State sale would be completed, only in respect of goods, which are earmarked for a particular customer. Here the admitted fact is that the customers had placed orders for supply of H.D.P.E., sacks and not H.D.P.E., fabric. Even though, the fabric might have been manufactured to the specifications, yet given the fact that the contract is not for the fabric as such, but for stitched sacks on a specified shape, and the compliance of the contract itself arose only in Tamil Nadu, we fail to understand that the mere despatch of fabric, which incidentally might have fitted in with colour or the textiles would not by itself result in appropriation to the contract placed by the customer. In these circu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
