TMI Blog2001 (9) TMI 1097X X X X Extracts X X X X X X X X Extracts X X X X ..... "intra-State sale". 2.. The case of the petitioner is that it is a company registered under the Companies Act, 1956. It is essentially a financial institution and extends financial assistance to industrial houses/special contractors who are engaged by it for setting up of plants and machineries. As per the prevalent practice, they entered into agreement with their customers either by way of hire-purchase agreement or lease agreement. As both types of transactions are now brought into the definition of "sale", the petitioner has obtained registration certificates both under the Orissa Sales Tax Act, 1947 as well as under the Central Sales Tax Act, 1956. For the year 1997-98 the petitioner returned a gross turnover of Rs. 91,75,899.50 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and/or from established manufacturers in India the equipment which may be required by the intending lessee from time to time for a value not exceeding Rs. 800 lacs. AND WHEREAS the intending lessor has acceded to the said request and sanctioned a limit of Rs. 800 lacs for import or purchase of equipment locally as may be required by the intending lessee and lease them to the intending lessee on such terms and conditions as are stipulated herein and in the lease agreements (s) to be executed by and between the intending lessor and the intending lessee in respect of each of such arrangements. NOW IN CONSIDERATION of the intending lessor agreeing at the intending lessee's request to purchase by import or otherwise such equipment as may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e supplier, goods have been supplied by petitioner which were subsequently sold to I.A.P.L. when the goods were in transit. Since the transaction as admitted by the dealer prima facie falls under section 6(2)(B) of the Central Sales Tax Act, 1956 (for short, "the CST Act"), the assessee was asked to produce the relevant document in support of such transaction. The assessing officer further concluded that as per provisions laid down under clause (B) of sub-section (2) of section 6 of the CST Act, the dealer was required to furnish the declaration forms in "C" to the first selling dealer in course of inter-State trade and commerce and to obtain declaration in form "E" from him for claiming exemption from payment of further tax on the turnover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were subsequently sold to one M/s. I.A.P.L. of Angul, when the goods were in transit. Since the transaction as admitted by the dealer prima facie falls under section 6(2)(B) of the C.S.T. Act, Sri V. Sukumar was asked to produce the relevant document in support of such transactions. Sri Sukumar in his turn, furnished a statement disclosing the name of the consignor, consignee, description of goods, invoice No., date, way bill No., place of despatch, destination, vehicle No. etc., for a total turnover of Rs. 2,20,04,963.68 duly signed. But could not produce any other evidence for such sales which has been effected by way of transfer of documents to the title of the goods as admitted by Sri Sukumar. On the other hand, he disowned their tax l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found that the first sale from the supplier to the petitioner being interState sale, taxability of event is a matter in the appropriate State from which movement of the goods had started. There is no requirement for assessing the sale turnover of said goods in Orissa under the provisions of the Orissa Sales Tax Act. We may note that the Assessing Officer has also found, as stated above, that there is subsequent sale between the petitioner and I.A.P.L. in course of transit of said goods and whether subsequent sale is exempt from tax as per the provisions of section 6(2) of the C.S.T. Act is a matter to be looked into while assessment under the C.S.T. Act if and when taken up against the petitioner. Therefore, adducing evidence in the shape ..... X X X X Extracts X X X X X X X X Extracts X X X X
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