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TMI Blog1993 (4) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Cummins products. The manufacturers, who are stationed at Bombay and Poona, had despatched the goods for various destinations in the State of Bihar raising bills against the assessee which included Central Sales Tax (in short, "C. S. T.") at the rate of four per cent. During the course of movement of the said goods, a second sale was effected by the assessee by transfer of document of, title. While realising the sale price of the said goods, the assessee reimbursed itself by charging the said four per cent. Central sales tax from its customers. Curiously, though the assessee claimed the Central sales tax paid by him to the manufacturers as trading expenses by debiting it to the purchase account, the amount received by him by way of Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le or purchase of goods shall be deemed to take place in the course of inter-State trade or commerce if the sale or purchase-(a) occasions the movement of goods from one State to another, or, (b) is effected by a transfer of documents of title to the goods during their movement from one State to another. Subsection (1) of section 6 makes every dealer liable to pay tax under this Act on all sales effected by him in the course of inter-State trade or commerce. Sub-section (2) of section 6, inter alia, provides that any subsequent sale during the movement of goods effected by a transfer of documents of title to such goods to a registered dealer of specified description shall be exempted from tax under the Central Sales Tax Act, but the proviso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est for the convenience for the assessee but for the purpose of computation of taxable income the creation of such accounts is of no consequence. In the case of Chowringhee Sales Bureau P. Ltd. v. CIT [1973] 87 ITR 542, it has been held by the Supreme Court that (at page 548) It is apparent from the order of the Appellate Assistant Commissioner and has not been disputed before us in the present case that in the cash memos issued by the appellant to the purchasers in the auction sale it was the appellant who was shown as the seller. The amount realised by the appellant from the purchasers included sales tax. The appellant., however, did not pay the amount of sales tax to the actual owner of the goods auctioned because the statutory liabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a separate ledger termed 'empty bottles return security deposit account', this court observed : 'So the amount which was called security deposit was actually a part of the consideration for the sale and, therefore, part of the price of what was sold. Nor does it make, any difference that the price of the bottles was entered in the general trading account while the so-called deposit was entered in a separate ledger termed '.'empty bottles return deposit account" for, what was a consideration for the sale cannot cease to be so by being written up in the books in a particular manner'." (emphasis supplied). The same view has been reiterated in the case of Sinclair Murray and Co. P. Ltd v. CIT [1974] 97 ITR 615 (SC). In support of his submi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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