9911796707
TMI Blog2021 (3) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... - The issue involved in this case is squarely covered by the decision of the Hon'ble Division Bench of this Court in the case of THE STATE OF TAMIL NADU REPRESENTED VERSUS TVL. ANNAMALAIAR MILLS LTD [ 2015 (12) TMI 468 - MADRAS HIGH COURT ] where it was held that Tamil Nadu Sales Tax Appellate Tribunal, after verifying the facts stated 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 [1981 (7) TMI 204 - SUPREME COURT OF INDIA] and also by applying the view of the TNTST, Chennai in the cases, was of the firm view that the transaction cannot be considered as local sale, but only as inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 appreciation, the findings of the Tribunal in paras 6 to 8 of the impugned order are extracted below: 6.We heard the arguments put forth by the learned Authorised Representative and the learned Additional State Representative and carefully examined the records produced at the time of hearing along with the assessment records. The only point for consideration is: Whether the disputed transactions in all the five years is an interstate purchase at the hands of the appellants or a local purchase liable to be taxed under the TNGST Act, 1959 i.e., whether the transactions fall under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 delivery is taken from such carrier or bailee. Explanation: 2 Where the movement of goods commences and terminates in the same State, it shall not be deemed to be a movement of goods from one State to another by reason merely of the fact that in the course of such movement the goods pass through the territory of any other State . We examined whether the appellants' transactions fall under the above mentioned Section 3(a) of the CST Act 1956. If it falls under the above section, the local Act and the Section 4 of the CST Act, 1956 need not be applied. Section 3(a) of the CST Act, 1956 states ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation. Hence, the disputed transactions have to be considered as local sales. We have given careful consideration with reference to the facts of these cases. It is an admitted fact that the Federation has delivered the goods only after receipt of the payment in Tamil Nadu from the Godown. Because of this factor, the disputed transaction cannot be considered as local sale as per the decision of the Hon'ble Supreme Court in the case of Oil India Ltd. v. Superintendent of Taxes reported in 35 STC 445 wherein it has been held that a sale which occasions movement of goods from one state to another is a sale in the course of interstate trade, no matter in which State the property in the goods passes. It is not necessary that the sale must pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rketing Federation Ltd., Bombay. The above records clearly show that there is an interstate movement of cotton, which has been termed as local purchase by the Assessing Officer. The transactions are similar to the case decided by the TNTST, Chennai, in the case reported in TC(A) 2803 to 2805 of 1997, TC (R) no.112 and 114 of 1998 etc. Dated 1.11.1999. 8. We have also verified the fact with reference to the point mentioned in page 10 of TNTST, Chennai's order whether the disputed transactions relate to the movement of goods by the sellers without referring to any buyers and they have searched for buyers after storing the goods in the godown at Tamil Nadu. The verification of the records revealed that the case is not so. In all the years, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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