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2013 (7) TMI 492 - MADRAS HIGH COURTWorks contract - interstate movement of goods - local sale or CST - agglomeration of the goods to the immovable property - Exemption u/s 3-B(2)(a) of the Tamil Nadu General Sales Tax Act - Tribunal held sales as local sales - Held that:- customers placed order in the Branch Office in Tamil Nadu and only the Branch Office forwarded the order to the factory at Ghaziabad, wherein, lifts are manufactured according to the specifications of the customers and the factory at Ghaziabad after manufacturing the lifts, dismantled them and stock transferred them in parts to Branch Office in Tamil Nadu - What the Branch Office did was to send technician for the purpose of installation and erection, testing and commissioning of the lifts in the customer's site. The Tribunal failed to see that the consignee name is mentioned as "ECE Industries Limited care of clients address" in the delivery invoice only to indicate that the same is meant for customer's site and not despatched to the Branch Office. As the sale is already effected and as the manufacture of the lift at Ghaziabad is only in pursuance of job order evidencing interstate sales, the question of further sale by branch office does not at all arise herein. The Tribunal has erroneously arrived at the conclusion that the goods were sent to the Branch Office at Tamil Nadu, and it is only the Branch Office, who in turn effected sale to the ultimate customer, thereby, treated the disputed transaction as pure and simple local sales - there are sufficient materials to show that the nature of the transaction is interstate sales cum works contract - Following decision of STATE OF KARNATA AND OTHERS v. ECE INDUSTRIES LIMITED [2004 (11) TMI 518 - KARNATAKA HIGH COURT] - Decided in favour of Assessee.
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