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TMI Blog2014 (5) TMI 721X X X X Extracts X X X X X X X X Extracts X X X X ..... ement from Coimbatore to other State and to the local purchaser from the assessee - The condition as stipulated in Explanation I to Section 3(b), thus not satisfied - A reading of the order of the Tribunal shows that without adverting to any of these facts, Tribunal merely accepted the statement from the assessee to grant the relief. Going by the materials indicating the break in the journey of the interstate movement of goods, it is held that the findings of the Tribunal is without any material and there are no materials to disturb the findings given by the Appellate Assistant Commissioner - Thus, having regard to the perversity in the order of the Tribunal there is no hesitation in allowing this revision, thereby, setting aside the order of the Tribunal – Decided in favour of Revenue. Levy of Penalty – Held that:- Having regard to the facts referred to by the first appellate authority, which upheld the assessment on actual stock variation and the estimation made on equal addition, there is no ground to sustain the same - Consequently, the order of Tribunal stands confirmed on penalty - Revision is allowed – Decided against Revenue. - TC. (R) No.962 of 2006 - - - Dated:- 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cals from M/s. Cochin Refineries Limited, the liquid / gaseous chemicals were transported in tanker lorries. The transport, delivery and use of such chemicals were covered by Central Excise Provisions. As per this, there was no necessity to maintain a godown for storing before distributing to the ultimate buyers. The Revenue pointed out that verification of the purchase invoices, transport documents and other statements, revealed that after purchase, M/s. Mahaveer Chemicals transported them to Coimbatore. The transport documents revealed that the movement of goods started from Cochin in tanker lorries to Coimbatore and had the end destination at Coimbatore, it being the delivery place. After the receipt of the goods in Coimbatore, Mahaveer Chemicals effected EI sale to the assessee herein which was situated in the same premises. Since the sale was effected by transfer of documents of title to goods, while in transit, the sale was treated as one falling under Section 3(b) of the Central Sales Tax Act. However, as regards EII sales, said to have been effected by the respondent/ assessee, it was pointed out that the inspection of the business premises of the assessee on 9.9.1995 revea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llate Authority cancelled the assessment on the turnover of Rs.34,000/- relating to local commission sale. The first Appellate Authority also upheld the assessment on actual stock variation and the estimation made on equal addition. The assessee went on appeal before the Sales Tax Appellate Tribunal. 5. A perusal of the order of the Tribunal shows that it accepted the plea of the assessee that the assessee never took delivery of the goods and there were no materials to show that there was interception of interstate movement. Thus holding the Tribunal allowed assessee's appeal. 6. As regards addition made on account of stock variation, while upholding the actual stock variation, it deleted the estimated addition thereon. Aggrieved by the same, the Revenue is before this Court. 7. Learned Special Government Pleader appearing for the Revenue drew our attention to the finding by the Appellate Assistant Commissioner as well as the Assessing Officer that when the assessee had taken constructive delivery of the goods transported and the original transport documents showed the termination point at Coimbatore, nothing was substantiated from the side of the assessee to show that it nev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no material to reject the plea of the assessee on the claim for exemption on second interstate sales. The Tribunal rightly came to the conclusion that there was no break in the movement of goods to presume that delivery was taken by the assessee. In the circumstances, he prayed for confirming the order of the Tribunal. 11. Heard learned Special Government Pleader (Taxes) for the Revenue as well as learned counsel for the assessee and perused the materials. 12. Section 3 of the Central Sales Tax Act lays down the principle for determining when a sale or purchase of goods takes place in the course of interstate trade or commerce. Section 3(a) defines an interstate sale that a sale or purchase of goods shall be deemed to take place in the course of interstate sales if the sales and purchase of goods occasioned the movement of goods from one state to another. Section 3(b) provides for interstate sale by transfer of documents of title to goods during the movement of goods from one State to another. Thus, as per Section 3(b) all subsequent interstate sale by transfer of documents of title during the movement of goods also qualified to be called as interstate sale. Explanation I quali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RS, the authorities rightly rejected the assessee's claim for exemption under Section 6(2) of the Act. 14. As rightly pointed out by the Appellate Assistant Commissioner, even though there was separate sales at the point of time in the eye of law, there were two deliveries which synchronized at the same point of time. As far as the first sale is concerned, the authorities accepted the plea of the assessee that there was E1 sale. With the original movement terminating at Coimbatore, in the absence of any material to substantiate the contention that the second interstate sale was effected when the goods were in transit, the claim of the second sale was rejected by the Assessing Officer as well as by the Appellate Assistant Commissioner. Given the fact that the tanker lorries did not move further from Coimbatore to the ultimate customers with the initial transport documents which showed the destination as Coimbatore, further movement done as per the fresh invoices prepared and trip sheets and way bill clearly pointed out to fresh movement from Coimbatore to other State and to the local purchaser from the assessee. The condition as stipulated in Explanation I to Section 3(b) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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