TMI Blog1987 (1) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... oard in relation to the purchase of raw rubber. This amount was brought to tax under the Act by the assessing authority. The authority further held that a sum of Rs. 34,41,372 representing the sale proceeds of bus bodies supplied by the respondent to the Kerala State Road Transport Corporation was exigible to sales tax under the Act. The appeal by the assessee was allowed by the Deputy Commissioner (Appeals) by his order dated 26th July, 1980. He held that neither the cess paid in respect of raw rubber nor the sale proceeds of the bus bodies could be brought to tax under the Act. The appeal by the Revenue was dismissed by the Tribunal by its impugned order. 2.. As regards the cess paid by the assessee to the Rubber Board, it is not disput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 20th October, 1978, was accepted by the K.S.R.T.C. by its letter dated 28th October, 1978. The K.S.R.T.C. stated that it reserved its right to inspect the construction of the body at the place of work of the assessee. The assessee was required to telegraphically inform the K.S.R.T.C. of its readiness for inspection by the K.S.R.T.C. representatives. On acceptance of the assessee's offer, a formal agreement, as required by the tender notice, was entered into between the K.S.R.T.C. and the assessee on 22nd December, 1978, whereunder the assessee agreed to construct the bodies in accordance with the terms agreed upon between the parties and subject to the right of the K.S.R.T.C. to conduct inspection at the assessee's place of work. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... du to Trivandrum in Kerala. The contract was entered into between the assessee at Trivandrum (which is but a branch of M/s. Sundaram Industries Ltd., the head office of which is at Madurai) of the one part and the K.S.R.T.C. at Trivandrum of the other part. The branch at Trivandrum did not have facilities for construction work in Kerala. But it was clearly understood between the parties that the work would be done at the workshop belonging to the assessee's principal at Madurai. With the knowledge and consent of the K.S.R.T.C., the chassis was taken to Madurai solely for the purpose of construction of the body, and on completion of the body it was returned to Trivandrum. Each chassis together with the body is identifiable by the engine numb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods were despatched by the branch office situated outside the State of Andhra Pradesh to the buyer and not by the registered office at Hyderabad. In our opinion, that makes no difference at all. The manufacture of the goods at the Hyderabad factory and their movement thereafter from Hyderabad to the branch office outside the State was an incident of the contract entered into with the buyer, for it was intended that the same goods should be delivered by the branch office to the buyer. There was no break in the movement of the goods. The branch office merely acted as a conduit through which the goods passed on their way to the buyer. It would have been a different matter if the particular goods had been despatched by the registered office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould not be confused with its principal office at Madurai. 7.. From the facts stated above, it is clear what the intention of the parties was. It was at all material times understood that what was agreed to be constructed was the body for the chassis supplied by the K.S.R.T.C. and it would be constructed not in Kerala, but only at Madurai. It was also understood that the assessee being the branch office acted on behalf of its principal office and acted in that capacity only as an agent or as a conduit for the execution of the work by the principal at Madurai. The goods despatched from Madurai to the assessee at Trivandrum were not meant to be sold in the open market, but they were despatched specifically against the orders placed by the K ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
