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TMI Blog2020 (1) TMI 939X X X X Extracts X X X X X X X X Extracts X X X X ..... sed on the relevant documents and evidence, which they have analyzed in detail and came to the conclusion that branch transfers cannot be subjected to tax treating those transfers as inter-state sales as per the relevant provisions of the Central Sales Tax Act 1956. Petition dismissed - decided against Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... ppropriation at the discretion of the depots [h] Delivery of the goods were subsequently effected by the depots to various buyers by their own sale bills; the copy of the invoices were same time sent to the branch at Coimbatore for making effective collections; [i] The goods were not conducted to a buyer through the depot outside the state; [j] The depot in other state are registered under the respective states for the purpose of sales tax and have been assessed to sale tax in that State; [k] The goods were neither manufactured according to the specification of a particular customer nor particular goods were meant for a particular customer, so as to include the possibility of any adversion; [L] The depot Manager at the discretion to deliver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the two will be one of creditor and debtor. Following the ratio of the decision, we should observe that there was no transfer of property in goods between the appellant and the ultimate buyer in other State. 25.In the decision of the Supreme Court in the case of peninsular Traders versus Deputy Commissioner, Sales Tax [Law] Kerala reported in 108 STC 575,it was held that the agreement alone should be taken as the criteria in deciding the terms of an unusual obligation undertaken by any person concerned. The verification of the records would show that the price fixed in the stock transfer invoice to the depot was the exact price at which the goods are to be sold would show that the appellants had realized the same amount contained in pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and special discount at nine percent and all the discounts mentioned were either given to the ultimate buyers as trade discount or incurred as expenses by way of octroi duty and for clearing the goods dispatched by the principal to the agent. From this it was clear that PCL effected sales of the cocoa those of the dealer. Therefore PCL acted as agent of the dealer in effecting sales of the cocoa products at Bombay. The ratio of the decision of the High Court is applicable to the case on hand. 29. When the sale of goods effected on the same day or within a day to two has no relevance in determining the nature of the transactions. From the verification of the factual records, it is seen that the stock transfers have been effected in lump s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he customers after the arrival of the goods at their depot land sales effected thereafter were only local sales on which tax also was remitted to State of Maharashtra. Holding that whether the transaction is inter-state sale or not cannot depend upon a mere expression of a conviction or reiteration of such conviction, unless that conviction is well founded on facts properly established. The High Court set aside the order of the Tribunal affirming the view of the authorities below, in so far as the despatches to the depots at Thane and Bombay were concerned. They were held to be stock transfers made land not inter-state sales. However, in respect of transactions where the goods were dispatched to Berlia Chemicals, since the Certificate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Madras High Court decision in the case of Kathiresan Yarn Stores versus The State of Tamilnadu reported in 42 STC 121, it was held that in order to impose penalty, it must be possible first to come to the conclusion that there was actually a turnover and further that turnover was not disclosed. The mere fact that there is a best judgment assessment, particularly when the assessment is based assessee to establish the case pleaded by him, will not be sufficient for the purpose of imposition of penalty for the degree of proof required for the imposition of penalty is quite difference from and is of a much higher order that that required for the purpose of marking a best judgment assessment. However, in this case, we have deleted substantial ..... X X X X Extracts X X X X X X X X Extracts X X X X
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