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TMI Blog2021 (2) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... re, if the sale or purchase occasions the movement of goods from one State or another, it would qualify for a sale in the course of inter-state trade or commerce or if a sale or purchase is effected by a transfer of documents of title to the goods during the movement from one State to another, it would qualify as a sale in the course of inter-state trade or commerce. The Tribunal took note of the sub-contract entered into between the first respondent-assessee and M/s.UEHL, dated 24.06.1983. The terms and conditions of the said subcontract have been extracted in paragraph 14 of the impugned order passed by the Tribunal. On a perusal of the same, it is abundantly clear that what has been entrusted to M/s.UEHL is only a job work. The contract entered into by the first respondent-assessee with a party in Orissa or any other State is the main contract, for which, the assessee has entered into a sub-contract by supplying raw materials, so as to enable the sub-contractor to manufacture as per the design supplied by the first respondent-assessee. The first respondent-assessee has further instructed the sub-contractor, upon permission of the job worker to despatch the goods directly to o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent dealer-assessee is a registered dealer under the provisions of the CST Act in Hyderabad. The Commercial Tax Officer, Podanur assessment circle, while examining the records of M/s.Universal Heat Exchanges Limited, Coimbatore, (hereinafter referred to as 'UHEL') found that they had executed certain orders for fabrication of machinery for the first respondent-assessee with the raw materials supplied by the first respondent, according to the drawings and specifications. M/s.UHEL despatched the finished products to various places in other states as per the orders of the first respondent-assessee. The Assessing Officer was of the view that since the furnished goods manufactured by M/s.UHEL moved to other states from the State of Tamil Nadu, the State of Tamil Nadu is the appropriate State to assess the transactions under Section 9(1) of the CST Act. The Assessing Officer noted that the first respondent-assessee is not a registered dealer under the CST Act. Therefore, he treated them as a non-resident dealer in Tamil Nadu and the sales effected by them from Tamil Nadu was treated as inter-state sales on behalf of the first respondent-assessee, who had supplied the raw mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed before the Tribunal the sub-contract, which was executed in favour of the UEHL, dated 24.06.1983 to demand consideration as to what is the nature of the work entrusted. The Revenue reiterated this fact taken by the first appellate authority and sought to sustain the said order. 4. The Tribunal, after elaborately considering the factual aspects or more particularly terms and condition of the sub-contract and the sample which was produced before the Tribunal, had held that the first respondent-assessee was having a composite contract for manufacture of finished products to be supplied in various States and in compliance of such transaction, they entered into a sub-contract for supply of certain goods with M/s.UEHL at Coimbatore and after finishing the job work on the raw materials supplied, such components were taken to the respective site of the customers of the assessee. Further, the Tribunal found that the title to the goods was never transferred from the State of Tamil Nadu to the ultimate buyer in other States and therefore, it is not a case that the sale was completed as per the condition stipulated in Section 3(a) of the CST Act. The Tribunal referred to the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uments of title to the goods during the movement from one State to another, it would qualify as a sale in the course of inter-state trade or commerce. 7. To appreciate the transaction done by the first respondent-assessee, we have to examine as to whether it would fall under Clause (a) or (b) of Section 3 of the CST Act. This factual exercise has been done by the Tribunal and in our considered opinion, rightly, the Tribunal took note of the sub-contract entered into between the first respondent-assessee and M/s.UEHL, dated 24.06.1983. The terms and conditions of the said subcontract have been extracted in paragraph 14 of the impugned order passed by the Tribunal. On a perusal of the same, it is abundantly clear that what has been entrusted to M/s.UEHL is only a job work. The contract entered into by the first respondent-assessee with a party in Orissa or any other State is the main contract, for which, the assessee has entered into a sub-contract by supplying raw materials, so as to enable the sub-contractor to manufacture as per the design supplied by the first respondent-assessee. The first respondent-assessee has further instructed the sub-contractor, upon permission of the j ..... X X X X Extracts X X X X X X X X Extracts X X X X
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