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TMI Blog2009 (12) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... :- 18-12-2009 - RAVIRAJA PANDIAN K. AND SUNDRESH M.M. , JJ. The judgment of the court was delivered by K. RAVIRAJA PANDIAN J. These revisions are at the instance of the Revenue against the orders of the Sales Tax Appellate Tribunal dated December 23, 1993 in Madurai Tribunal Appeal Nos. 702 and 703 of 1992 relating to the assessment years 1989-90 and 1990-91, wherein and whereby the Tribunal has accepted the case of the assessee that the transactions effected by it are covered within section 6(2)(b) of the Central Sales Tax Act and not a local transaction, which is exigible to tax under the Tamil Nadu General Sales Tax Act. The facts: The assessees is a dealer in pumps, spares and electrical goods at Madurai. After obtaining o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d upon the materials on record, allowed the appeals, by granting exemption claimed under section 6(2)(b) of the Central Sales Tax Act, in respect of both the assessment years. The correctness of the same is now under challenge in these revisions at the instance of the Revenue. The reasons given by the assessing officer for non-suiting the claim of exemption, as claimed by the assessee are that the mere endorsement does not constitute a sale in transit. Sale between the dealer and the ultimate buyer had been completed only after concluding the sale, the dealers have issued despatch instructions to the suppliers to despatch the goods, it cannot be claimed that the dealer could get the order from various parties from Tamil Nadu and place th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transfer of documents of title to such goods shall not be subjected to tax under the Act. But the proviso to section 6(2) states that the exemption of such subsequent inter-State sales is conditional upon the dealer furnishing to the prescribed authority in the prescribed manner a certificate duly filled and signed by the registered dealer by whom the goods were purchased containing the prescribed particulars. In order to claim exemption, it will have to produce not only C form from the supplier, but also E1 form certificate from the dealer. From the provisions it is clear that availing of the benefit under section 6(2) of the Act, second or subsequent inter-State sales must have been effected by transfer of documents of title to goods. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ein it was observed that what is material for the purpose of section 3 of the Act is the movement of goods from one State to another, as a result of sale or purchase, and it is not essential that a direction for the movement of the goods be expressly set out in the contract. It can also be incidental to the transaction of sale. The same is the opinion of the Gujarat High Court in the case of State of Gujarat v. Haridas Mulji Thakker [1992] 84 STC 317. Having regard to the facts, as stated above, we are of the view that there is absolutely no material to take a different view than that of the Tribunal, so as to come to a conclusion that the movement of the goods has been broken at the end of the assessee and the assessee has subsequently ..... X X X X Extracts X X X X X X X X Extracts X X X X
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