9911796707
TMI Blog2015 (12) TMI 468X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessment years from 1986-87 to 1991-92, the issue involved is as to whether the transaction of purchase of cotton between the respondent Mill and one Maharashtra State Co-opertive Cotton Growers Marketing Federation Ltd., Bombay (hereinafter shortly referred to as Federation) is inter state sale or local sale by reason of delivery of goods, after payment of entire sale consideration within Tamil Nadu. While the original Assessing Officer and the Appellate Assistant Commissioner (CT), Madurai have, for the reasons recorded in the order, negatived the contention raised on the side of the assessee regarding the nature of the transaction as inter state sale and arrived at a conclusion that it is only a local sale and accordingly impos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )in the lorry way bill accompanied the goods, the name of the buyer and seller are mentioned as Annamalaiyar Mills and Maharashtra State Co-operative Cotton Growers Marketing Federation Ltd., Bombay respectively. (iv)the movement of goods of the seller is not with reference to any buyer and they were not in search for buyers after storing the goods in the godown at Tamil Nadu. In this case, the goods have been moved with reference to the firm purchase order placed by the buyer specifying the quantity and variety of cotton. The respondent Mill has also in support of their contention regarding the nature of the transaction as inter state sale, relied on the following documents: contract, delivery order, sales bills issued by the Federation, T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n order with the Maharashtra State Co-operative Cotton Growers Marketing Federation vide their letter dated 11.2.1993 and further by a letter dated 19.2.1983, the Federation confirms the letter and as per that letter the specified quantity of cotton have been moved from Maharashtra to the godown of the appellants mill. The godown was under the Joint Custody of the appellants and sellers (Federation). It is also found that only after the payment of the sale price the goods have been delivered to the appellants. On the facts available as above, we examined whether the transactions fall under the category of (i)mentioned under section 3(a) of the Act or not. We have also examined the fact whether the transactions which falling under section 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... occasioned by any document. In this case, the appellants have already entered into a contract with the Federation for the supply of cotton bales with quantity and quality. In this case, the appellants have already entered into a contract with the Federation for supply of specific number of cotton bales. The Federation moved the goods from Maharashtra to Tamil Nadu only in pursuance of that contract. It has been categorically held by the Supreme Court in various decisions. In the case of South India Viscose Ltd., v. State of Tamil Nadu, reported in 48 STC 232, "that if there is a conceivable link between the contract of sale and movement of goods from one State to another in order to discharge the obligation under the contract of sale the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is in pursuance of the contract even if the goods have been transferred to the buyer in Tamil Nadu, the transactions cannot be considered as a local sales and very well fall under the definition of interstate sales defined under section 3(a) of the CST Act, 1956. The implication of section 4 and 4(a) of the CST Act 1956 has also been examined by the Hon'ble TNTST, Chennai in the case relied on by the appellants. We also have examined the fact since the transit insurance has been paid by the Federation for the goods where the transactions can be considered as a local sale. In this regard the learned Authorised Representative contended that the transit insurance charges have been paid by the appellants to the Federation. Anyhow this is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In these circumstances, this transaction cannot be considered as one brought from outside the State without referring to any buyers and for selling after receipt in Tamil Nadu. In this regard also, the disputed transactions cannot be considered as a local sale. In the above circumstances, we have no hesitation to decide the transactions as an interstate purchase not liable to tax under the TNGST Act, 1959 at the point of last purchase in this state and thereby we allow all the five appeals."
As the findings rendered by the Tribunal are based on material facts and supportive documents and sustained by sufficient reasoning, we find no reason to interfere with the same.
7.In the result, the Tax Case Revision is dismissed. No costs. X X X X Extracts X X X X X X X X Extracts X X X X
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