9911796707
TMI Blog2006 (10) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... of 1991-92 and S.T.A. No. 318 of 1992-93 in respect of assessment years 1981-82 and 1982-83: "(a) Whether the transactions in question could be treated as interState sale merely because the assessee had mentioned the address of the purchasing dealer that of Delhi and that fact was incorporated in the sale invoice? (b) Whether the reviewing authority could decide the matter at its own level without examining the evidence in question? (c) Whether the movement of goods did take place in pursuance of any contract of sale or not? (d) Whether once the delivery is given to a party within the State of Haryana and its payment received in Haryana, the obligation of the selling dealer is over or not? (e) Whether the case was a case which re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the finding that the sales were inter-State sales. The Tribunal dismissed the appeal vide order dated February 27, 1996, annexure P6. The assessee, thereafter, filed a petition for reference of questions of law to this court, which was dismissed by the Tribunal vide annexure P7. Case of the assessee is that sales in question have to be treated as intra-State sales having regard to the fact that the assessee made delivery at its stockyard and was not concerned about the destination of goods after delivery. Reliance has been placed on judgment of the honourable Supreme Court in Balabhagas Hulaschand v. State of Orissa [1976] 37 STC 207; [1976] 2 SCC 44 and judgment of the Karnataka High Court in Ranjeet Trading Co. v. Commercial Tax Officer, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;s reply is that he treats inter-State sales only to the goods which are sent by train. The contention of the dealer is not convincing as the goods sent by road to outside the State of Haryana cannot be treated as intra-State sales. Thus, I treat such sales as interState sales which amounts to Rs. 1,85,57,772.65." Finding recorded by the Tribunal is as under: ". . . It is not disputed that the sale bills issued by the appellant were in the name of the parties of Delhi like D.D.A., N.T.P.C. and S.K. Construction Delhi, etc. None of the bills in dispute pertains to a party of Haryana State. The contention of the appellant that the delivery of the goods was given at Faridabad has no force as he has not adduced any evidence in supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce 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. 4.. When is a sale or purchase of goods said to take place outside a State.--(1) Subject to the provisions contained in section 3, when a sale or purchase of goods is determined in accordance with subsection (2) to take place inside a State, such sale or purchase shall be deemed to have taken place outside all other States. (2) A sale or purchase of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es that a movement of goods which takes place independently of a contract of sale would not fall within the meaning of inter-State sale. In other words, if there is no contract of sale preceding the movement of goods, obviously the movement cannot be attributed to the contract of sale. Similarly, if the transaction of sale stands completed within the State and the movement of goods takes place thereafter, it would obviously be independently of the contract of sale and necessarily by or on behalf of the purchaser alone and, therefore, the transaction would not be having an inter-State element. Precedents are legion; we may briefly refer to some of them. In English Electric Company of India Ltd. v. Deputy Commercial Tax Officer [1976] 38 STC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e customers having address outside the State was not enough for holding that the sales were in the course of inter-State trade. The revisional authority has not referred to or relied upon any material on record except the address of the buyer to substantiate that the goods were to move outside State as a result of contract between the assessee and the buyer. No finding has been recorded in the impugned order that delivery took place outside the State. We, therefore, remand the matter for fresh decision to the revisional authority, i.e., the Deputy Excise and Taxation Commissioner (I), Faridabad (East) to examine this question by allowing the assessee to lead evidence. One of the additional issue raised in S.T.C. No. 4 of 1996 is the effe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
