9911796707
TMI Blog2021 (3) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... and Mr.R.Swarnavel, learned Government Advocate appearing for respondents 2 and 3. 2. The writ petition has been filed by the dealer, registered under the provisions of the Tamil Nadu General Sales Tax Act and the Central Sales Tax Act challenging the order dated 02.2.2005 passed by the first respondent Tribunal in Coimbatore Tribunal Appeal No.95/98 3. There are two issues dealt with by the Tribunal and decided against the petitioner. The first issue is with regard to the assessment made on the turnover of Rs. 16,77,494/- pertaining to hank yarn obligation. The second issue related to the assessment made on the disputed turnover of Rs. 7,86,81,405/-, which represented the cotton purchases effected by the petitioner from the Maharashtra F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated above by the assessee, in the light of the documents referred to above and by applying the principles laid down by the Hon'ble Supreme Court in South India Viscose Ltd v. State of Tamil Nadu, reported in 48 STC 232 and also by applying the view of the TNTST, Chennai in the case in TC(A) Nos.2803 to 2805 of 1997 and TC (R) Nos.112 and 114 of 1998 etc dated 1.11.1999 [Jambai K.N.M. Textiles (P) Ltd. Vs. State of Tamil Nadu [(2000) 118 STC 77(TNTST)], was of the firm view that the transaction cannot be considered as local sale, but only as inter state purchase and the same was not liable to tax under the TNGST Act 1959 at the point of last purchase in the State and accordingly allowed all the five appeals. 6.For better appreciatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T Act 1956. Regarding the first point whether the transaction is falling under section 3(a) of the CST Act, 1956, the relevant section is extracted below. "Section 3(a) of the CST Act, 1956: A sale or purchase of goods shall be deemed to take place in the course of interstate trade of 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. Explanation 1: where goods are delivered to a carrier or other bailee for transmission, the movement of the goods shall, for the purposes of clause (b), be deemed to commence at the time of such delivery and terminate at the time when delive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osition of an agent of the seller, who may temporarily intercept the movement, will not alter the interstate character of the sale". In this case, even considering the said depot as a branch of the Federation, the real fact that there is a movement in pursuance of contract from one State to another cannot be denied. Another point relied on by the learned Additional State Representative and the Appellate Assistant Commissioner is that since the property in goods have been transferred to the appellants in this state and as long as the payment was made the ownership of the goods remains with the Federation. Hence, the disputed transactions have to be considered as local sales. We have given careful consideration with reference to the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a vital point to decide the transaction whether it is a local sale or interstate sale. 7.We have examined the contract, delivery order, sales bills issued by the Federation, transport invoices etc. These records clearly show that the movement is in pursuance of the agreement entered into by the buyers regarding specific quantity. In the sale bill, the buyer has been mentioned as Annamalaiyar Mills Ltd., (the buyers) the sellers (Federation). In the lorry way bill accompanied the goods also has been mentioned the buyer as Annamalaiyar Mills and seller as Maharashtra State Co-operative Cotton growers Marketing Federation Ltd., Bombay. The above records clearly show that there is an interstate movement of cotton, which has been termed as lo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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