2009 (10) TMI 857

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..... for the officer to reconsider the matter and if required, cross-check the check-post records if available. We make it clear that if proof of inter-State movement is produced for substantial quantity of the turnover, then the entire claim should be allowed because at this distance of time the respondent may not be able to produce L.Rs. for all the transactions. It is up to the respondent to produce copies of L.Rs., details of freight paid through cheques, etc. If evidence is produced, the assessing officer will revise the assessments granting concessional rate. On the other hand if the respondent fails to produce documents for substantial turnover of inter-State sales, then the Tribunal's order will stand reversed and the assessments ma .....

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..... Intelligence Officer [2008] 17 VST 300; [2008] 16 KTR 501 and contended that mere production of C form is not sufficient evidence of inter-State sale. On several occasions this court had considered cases relating to tax evasion practised by dealers by using Mahe, part of the Union Territory of Pondicherry located within Kerala. Going by the findings in several judgments, there is nothing wrong in the assessing officer doubting genuineness of the transactions of inter-State sale and asking for clear proof about movement of goods from Kerala to outside State for accepting inter-State sales. Besides this, two types of inter-State sales are covered by section 3(a) and 3(b) of the CST Act. While clause (a) of section 3 deals with sale occasio .....

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..... ssarily involve movement of goods from one State to another, it is absolutely within the powers of the assessing officer to demand documents towards proof of transport of goods from the depot of the dealer to the purchaser in the other State. It is up to the Department to cross-check the documents of transport with entries in the check-post register to verify whether there is physical transport of goods. As already mentioned, the transaction in this case itself is suspicious because goods have reached from manufacturing facilities in North India to far South in Kerala and again it is transported to dealers in Mahe for local sale there. If this transaction is believed, then respondent would have suffered heavy loss on account of unnecessary .....

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