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TMI Blog2023 (1) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... al, Cuttack (Tribunal) by the order dated 26th July, 1993 referring the following questions for adjudication: (i) Whether in the facts and in the circumstances of the case, the Tribunal was justified in law in holding that goods manufactured by sale in its Rourkela Steel Plant and despatch from the plant to different branches outside the State of Odisha under the time bound supply scheme and the demand registration scheme be treated as transactions of interstate sales coming within the purview of Section 3(a) of the Central Sales Tax Act, 1956 (CST Act) ? (ii) Whether in the facts and in the circumstances of the case, the Tribunal has ignored the fact of absence of any conceivable links with the customers and the despatch of the goods t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so that the Company will be in receipt thereof by the 20th of each month, his firm order for purchases to be effected during the next succeeding month and his estimated requirements of the said vehicles for the two months following the next succeeding month, for the said vehicles. 11. In the communication which has been referred to before sent to the Assistant Commissioner it had been emphasised that although the above clause regarding the firm order was included in the dealership agreement, in fact no firm orders were called for in view of the Control Order. It was maintained that during the relevant period sales were effected from the stockyards alone, the procedure adopted being as follows: The sales office of the appellant in Bom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er by the sales office. It is claimed that the transfer of the vehicles from works to the various stockyards was a continuous process and was not related to the requirement of any particular customer whether a dealer or a corporation or a private individual. These vehicles were transferred by way of stock to the stockyards or depots from where the transactions of sale were effected. It was pointed out that there was no connection between the Stock Transfer Authorisation and the allocation letter. The vehicles were delivered to the dealers as and when they were available in the stockyards irrespective of whether or not allocation for the dealers had been made or notified to them. There bad been many instances where the vehicles had been actu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been a booking under the TBSS. The Court's attention was drawn to the proforma of registration form filled up by the customer placing a demand for supply of iron and steel materials. Clause 5 of the said form reads as under: "It is noted that registration of the above demand will not be construed to mean any commitment on your part to supply materials." 6. Relying on the observations of the Supreme Court in Tata Engineering and Locomotive Co. Ltd. (supra) it was submitted that once the Assessee discharges the initial burden of showing that the transaction was nothing but a branch transfer, it was for the Department to demonstrate that the movement of goods from Odisha to outside of Odisha was a result of the concluded contract arrived ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the CSTAA and some of those matters on remand had been decided by the Tribunal in favour of the Department, after which SAIL has taken it in appeal to the CSTAA, the present matter should also be sent back to the Tribunal for a fresh determination whether the transactions in question for 1988-89 were interstate sales as contended by the Department or merely inter branch transfers as contended by the Assessee. 9. The above submissions have been considered. There can be no manner of doubt that an AO is required to examine each transaction forming the subject matter of the assessment proceedings to determine whether it amounts to a branch transfer as contended by the Assessee or an interstate sale as contended by the Department. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the scheme itself as spelling out an agreement of sale. The mere fact that the objective of the scheme is stated to give commitment to the customers regarding supply of materials against firm orders does not lead to the necessary inference that the offer and acceptance resulting in agreement of sale would have come into effect before the goods were dispatched from the steel plant. A general statement of the objective does not control the operative clauses of the scheme and the actual modalities of the transactions." 11. From the Assessee's point of view, sufficient documents have been placed on record in support of its contention that all the transactions forming subject matter of the assessment proceedings for 1988-89 were in fact branch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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