9911796707
TMI Blog2023 (8) TMI 607X X X X Extracts X X X X X X X X Extracts X X X X ..... l Sales Tax Act, 1959 (in short 'Act'), for the periods 2002-03 and 2003-04 (in short 'periods in question). 2. The Petitioner is engaged in the business of manufacturing and fabrication of railway tracks, and is a railway contractor undertaking works for the Railways in India. It is hereinafter referred to as 'petitioner'/'assessee'/ 'contractor'. The petitioner is not registered to sales tax in the State of Tamil Nadu. 3. Assessments were made on 02.05.2023 and concurrent orders suffered by the petitioner through both levels of appellate hierarchy, order of the Appellate Commission in first appeal dated 30.08.2017 and order of the Tribunal dated 19.11.2018. The facts, as relevant to decide these appeals, are as set out in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k refund as has been done in the present case. 8. Importantly, the payment schedule as per the special conditions of steel channel sleeper is as follows: "Special Condition of Steel Channel Sleeper: ......4. Payment schedule, galvanized channel sleepers and its complete fittings and fixtures (for item 1 of tender schedule) (a)On arrival of all galvanized channel sleepers with all including fittings for item I and II at bridge work site 60% (duly passed by inspecting officials and supported by relevant tcst/inspection certificates). (b)Fixing of all channel sleepers on the girder after dismantling the existing bridge timbers and painting the sleeper by one coat of the red lead pain conforming to IS 102 which will be supplied by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction between the petitioner and the Southern Railways constitute domestic or interstate sales, and read thus: A. Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the transaction only an Intra-State Transaction and not Inter-State transaction? B. Whether, on the facts and the circumstances of the case, the Tribunal was right in having concluded that in all aspect the Appellant/Petitioner fails to establish their case and has no hesitation to confirm the Order passed by the first Appellate authority although the appellant produced all documents before the authorities below and the Authorities did not consider submission of the petitioner. C. Whether, on the facts and in the ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, sought refund of the sales tax deducted at source upon payments remitted to it by the Railways. It was only then, when the sales tax department was required to refund the amount, that show cause notices came to be issued to the petitioner proposing to treat the transactions as domestic 'works contracts'. 16. The department issued pre-assessment notices on 15.02.2010, adopting the stand that the activity of manufacturing/fabrication and execution of the work had taken place in Tamil Nadu and would be treated as domestic sales. Incidentally, the pre-assessment notices have been issued beyond the statutory period of limitation. However, as no defence has been taken by the assessee on this score, we leave this issue as is and proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherever the contract of sale or purchase might have been made, if the goods are within the State- (i)in the case of specific or ascertained goods, at the time the contract of sale or purchase is made; and ....." 20. In the present case, the contract is between the assessee in Raipur and Southern Railways. We are unaware of where the contract was entered into by the parties. However, there is no dispute on the position that the goods forming the subject matter of the contract, have been fabricated in Raipur and thereafter brought to Tamil Nadu for installation. 21. Explanation-3 to Section 2(n) of the Act would not stand attracted in such a case and the transaction would fall outside the ambit of domestic sale, assuming the character o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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