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TMI Blog2007 (8) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods. - C.W.P. No. 6859 of 2007 - - - Dated:- 6-8-2007 - KUMAR M.M. AND AJAY KUMAR MITTAL , JJ. The judgment of the court was delivered by M.M. KUMAR J. The highhandedness of certain officers at the information communication center and their indulgence in unlawful activities has driven the petitioner to this court by filing the instant petition under article 226 of the Constitution with a prayer for quashing notice dated May 2, 2007 (annexure P4) and any proceedings initiated in pursuance thereto. As an interim measure a direction has been sought to the respondents to release the goods and the truck. Brief facts of the case are that the petitioner is a registered dealer under the Haryana Value Added Tax Act, 2003 (for brevity, the Haryana VAT Act ) and under the Central Sales Tax Act, 1956 (for brevity, the CST Act ). The petitioner has its factory at Agrosaw Complex, Jagadhri Road, Ambala Cantt., and is engaged in the business of manufacture and trading of seed cleaning and grading machines. The petitioner sent a quotation on March 20, 2007 (annexure P1) to the Punjab Agriculture University, Ludhiana with regard to supply of agrosaw specific gravity separa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the Punjab VAT Act in respect of goods in transaction. It also requires examination of the documents. It has been alleged that the ETO has employed various tactics to harass the dealers who come from outside Punjab because in order to get the goods released such dealers have to furnish bank guarantee. When the matter came up for consideration on May 8, 2007, this court directed that the goods along with the vehicles be released to the petitioner on furnishing of bank guarantee to the satisfaction of the detaining officer and that the bank guarantee was not to be encashed till further orders. The writ petition was taken up for consideration on May 15, 2007 when the learned State counsel apprised the court that the goods along with the vehicle were released on furnishing of bank guarantee which has not been encashed. He also undertook that no further orders would be passed under section 51 of the Punjab VAT Act. The respondents in their joint reply filed through Shri S.S.Bangar, Excise and Taxation Officer has taken the stand that the petitioner has violated sections 21(1) and 6(3)(a)(i) of the Punjab VAT Act which has been enforced to enhance the Government revenue by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State Counsel, has made an attempt to support the impugned order by urging that it was an F.O.R. sale and no document showingpayment of price of the goods was produced. He has further suggested that the dealers who are carrying on F.O.R. business in Punjab are required to have registration TIN and in the absence thereof it would be presumed that the goods were meant for trade. Learned State counsel does not find any illegality in the order. Having heard the learned counsel for the parties at a considerable length we are of the view that this petition deserves acceptance and the impugned notice dated May 2, 2007 (annexure P4) is liable to be quashed. It would first be appropriate to read section 3 of the CST Act which reads as under: 3. When is a sale or purchase of goods said to take place in the course of inter-State trade or commerce. A sale or purchase of goods shall be deemed to take place in the course of inter-State trade or commerce if the sale or purchase, (a) occasions the movement of goods from one State to another; or (b) is effected by a transfer of documents of title to the goods during their movement from one State to another. The aforementioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stipulation, express or implied, regarding inter-State movement of goods; (ii) the goods must actually move from one State to another, pursuant to such contract of sale, the sale being the proximate cause of movement; and (iii) such movement of goods must be from one State to another State where the sale concludes. It follows as a necessary corollary of these principles that a movement of goods which takes place independently of a contract of sale would not fall within the eaning of inter-State sale. The first ingredient that the contract of sale must have stipulation regarding movement of goods is evident from the reading of the letter of acceptance dated March 29, 2007 (annexure P2) sent by the Punjab Agriculture University, Ludhiana that the payment of the machine shall be made on delivery of equipment in the Department of Food Science and Engineering, Punjab Agriculture University, Ludhiana. It is further supported by invoice/bill dated May 1, 2007 showing the movement of goods from Ambala to Punjab Agriculture University, Ludhiana. A perusal of the bill shows that the petitioner has added sales tax at four per cent in pursuance to the provisions of section 3(1) of the CST ..... X X X X Extracts X X X X X X X X Extracts X X X X
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