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TMI Blog2014 (3) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... was required to maintain a buffer stock of atleast two trucks without any guarantee of any purchase being actually made by the Delhi Administration. As and when the Delhi Administration would make the purchases, the dealer who was to be a L1-A licensee would supply the goods and replenish the stocks and the things would go on like that during the currency of the agreement. Therefore, as is indicated by the agreement, the movement of the goods to Delhi was not in pursuance of any transaction of sale but in pursuance of the licence under which the dealer was to maintain a warehouse with a minimum stock within the territory of Delhi. The agreement by itself did not bring about any sale or purchase and, therefore, the transport of goods from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law have been raised in this revision: "(1) Whether in view of the judgment of Central Distillery Beverages Limited (supra); Sri Shadi Lal Enterprises (supra) and Co-operative Company Limited (supra), the Trade Tax Tribunal was justified in treating the stock transfer made by the applicant to Delhi Depot as inter-State sale? (2) Whether in view of the agreement with Delhi Administration, a perusal of which clearly shows that the applicant has to maintain a buffer stock as well as there was no guarantee for purchase of any specific quantity of 50 degree up Rum, still the authorities were justified in treating the stock transfer made to Delhi Depot as inter-State sale? (3) Whether merely form 'C' and tax @ 4% under protest has been d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y stock transfer made by it to Delhi Depot pursuant to aforesaid agreement but simultaneously has also mentioned in the order that Form 'F' was submitted but details were not given. The findings read as under:- "All the facts concerning the said dispute were considered by us. From the perusal of the orders passed by the subordinate officers, it is clear that the trader has, at any juncture, not adduced any evidence or proof in respect of the alleged stock transfer to the Delhi Branch of the foreign liquor manufactured in India shown to have been sold in F-Forms for the said years entailing central taxes, which evidence or proof may establish the alleged stock transfer made by him. Even at this stage, no such evidence has been produce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout showing any infirmity, irregularity or illegality therein, the same could not have been ignored so as to treat the goods therein as sale. 8. A similar kind of agreement, which is involved in the present case, came to be considered by this Court in M/s Central Distillery and Breweries Ltd., Meerut Vs. Commissioner of Trade Tax, 1999 UPTC 457 and this Court has held in paras 9 and 10 of the judgment, as under: "9. As is evident from the terms of the agreement, the intention of the parties was to bring about intra-State sales at Delhi from warehouse of the dealer that it was required to establish within the territory of Delhi where the dealer was required to maintain a buffer stock of atleast two trucks without any guarantee of any pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, that the disputed turnover was taxable as inter-State sales suffers from a legal error and is hereby set aside. I hold that it is not established that the turnover, referred to above, represented inter-State sales and it was, therefore, not taxable as inter-State sales under the Central Sales Tax Act. 10. It was also contended that the Delhi Administration had issued Form D in respect of these purchases which indicated that these were inter-State transactions. In my view this is immaterial. Form D only declares that the purchases have been made on behalf of Government. There is no declaration that they were the result of inter-State sales or purchases. Therefore, the declarations issued by the Delhi Administration cannot concl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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