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2022 (4) TMI 1203 - MADRAS HIGH COURTValidity of assessment order - reversal of exemption granted to the petitioner for transit sale - claim of exemption disallowed on transit sale by treating it as a local sale - reason for rejection of the claim for exemption is that the Form E1 issued by the supplier from Calcutta contains the place of destination as Kalpakkam and in transit sale, the supplier should not be made aware of the purchaser's name and address. HELD THAT:- The case of the petitioner is that they have received an order from the Atomic Power Project, Kalpakkam for supply of certain electrical goods. The purchase order so received has been forwarded by them to its supplier at Calcutta and they in turn supplied the goods directly to the Atomic Power Project, Kalpakkam. However, it is stated that such supply and/or delivery of goods effected by the supplier at Calcutta is for and on behalf of the petitioner and consequently, they are entitled to claim exemption under Section 6 (2) of the CST Act. But, such claim of the petitioner was rejected and the sale was treated as a local sale by the third respondent on the ground that form E1 issued by the supplier from Calcutta contains the place of destination as Kalpakkam and in a transit sale, the supplier may not be knowing the purchaser's name and address - Therefore, whether the supply of goods effected by the petitioner was a transit sale or it was a local sale, disentitling them from claiming exemption, has to be examined. The supply of goods effected by the petitioner through a supplier at Calcutta to the Atomic Energy Project, Kalpakkam cannot be regarded as local sales and it is a transit sale - Petition allowed.
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