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TMI Blog2018 (12) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... y the supplier that an offer crystallizes into a binding promise or contract. That took place in Mumbai. It is now too far well settled that the incidence of Central Sales Tax or even sale of goods, occurs where the goods are appropriated to the contract. In this case, the place where the appropriation took place, is undoubtedly Mumbai. Appeal dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... iated to the contract, which was concluded in Mumbai, upon acceptance of the offer/placing orders. 3. Learned counsel sought to urge that the Tribunal made an error in holding that the Delhi Sales Tax Act, 1975 did not apply. He relied upon the decision in Kone Elevators India Pvt. Ltd. vs. State of Tamil Nadu and Ors. (2014) 7 SCC 1 and also stated that the sale of the right to use the elevators was concluded in Delhi, which was also the place of performance of the contract i.e. installation and commissioning. He also relied upon the judgment of the Supreme Court in Larsen and Tourbo Limited Vs. State of Karnatka (2014) 1 SCC 708. The relevant findings of the VAT Tribunal, allowing the assessee's appeal are as follows: "25. The· a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers, the price shall be subject to adjustment up or down in accordance with the following formula ..... page 6 last para - PAYMENT TERMS:- under this clause claim for manufactured materials shall be paid along with our material invoice and claim for installation labour shall be paid along with our final invoice. Page 7 clause 6 CONDITIONS OF CONTRACT 6. Payment shall be made pro rata per elevator as follows: 30% with your acceptance of this proposal, 60% on receipt of advice from us that materials are ready for dispatch, and the remaining 10% on completion of our installation work, with the further provision. We reserve the right to dispose of the equipment or to discontinue our work or to withhold the release of completed elevator(s) at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 8 clause 17 - The equipment offered by us has been described in our attached specifications and complete equipment will be supplied and installed as per standard Otis Design, manufacture and practice. In case of any variation between your specifications, terms and conditions and our quotation/ specifications / correspondence, the latter shall prevail. Page 8 clause 21 - The contract is deemed to be concluded at NEW DELHI and only Courts in this place shall have jurisdiction in the event of any dispute whatsoever. (iv) There is nothing on record that the lifts are manufactured at Bombay and then send to Delhi in semi-knock down state and fixed here as such it is a interstate sale. The sample agreement placed on file does not mention that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OR ABOUT 9.9 MTRS STOPS & OPENINGS 4 STOPS /4 OPENINGS (ALL OPENINGS ON SAME SIDE) POWER SUPPLY 415 VOLTS 3 PHASE 50 CYCLE A.C. LIGHT SUPPL 230 VOLTS SINGLE PHASE 50 CCLE A.C. CONTROL OICS-1 OPERATION SINGLE AUTOMATIC PUSH BUTTON MACHINE GEARED TRACTION VTR MACHINE OF OTIS DESIGN PLACED DIRECTLY ABOVE THE HOISTWA IN THE MACHINE ROOM CAR SIZE ABOUT 1170 MM WIDE X 940 MM DEEP INSIDE DIMENSIONS HOISTWAT REQUIYRED ABOUT 1600 MM WIDE X 1400 MM DEEP INSIDE DIMENSIONS CAR ENTRANCE PROTETED B IMPERFORATED CAR DOOR CIFAP OPENING, 700 MM WIDTH X 2000 MM HEIGHT CAR ENCLOSURE CLASSIC STEEL CAR DESIGN IND-140 HOISTWA ENTERANCES PROTECTED BY IMPERFORATED LANDING DOORS CITEAP OPEING, 700 MM WIDTHX 2000 MM HEIGHT DOOR OPERATION MANUAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the Delhi Sales Tax on Works Contract Act, 1999." 4. This Court is of the opinion that the appreciation of the law by the Tribunal in this case is sound and unexceptionable. The placement of an order by the agent for procurement of the lifts in this case was merely an offer. It is only upon its acceptance and further steps taken by the supplier that an offer crystallizes into a binding promise or contract. That took place in Mumbai. It is now too far well settled that the incidence of Central Sales Tax or even sale of goods, occurs where the goods are appropriated to the contract. In this case, the place where the appropriation took place, is undoubtedly Mumbai. This Court's conclusion is also supported by a similar reasoning adopted i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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