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2007 (8) TMI 684 - HC - VAT and Sales TaxTax levy on Turnover - Whether there could be any subsequent sale effected by the respondent as per Explanation 1 appended to section 3(b) of the CST Act in furtherance to the ultimate buyer—KPTCL before the commencement of the movement of the goods from other State to the State of Karnataka? Whether the State of Karnataka which has issued "C" forms to the registered dealer is the "appropriate State" to levy CST as per the proviso appended to section 9(1) of the CST Act? Held that:- Factual aspect is considered by the assessing authority with reference to undisputed fact of delivery of goods of capacitor banks to the KPTCL in the State of Karnataka on the basis of the terms and conditions of the contract entered into with the respondent, a registered dealer, by the above Corporation and delivered goods to the Corporation, which was manufactured as per the specification of the KPTCL at Karnataka State. Therefore, the provisions of section 9(1) proviso of the CST Act are attracted but not section 6(2) of the CST Act, to the case on hand. Therefore, assessing authority and first appellate authority have rightly held that the Karnataka State is the appropriate State entitled under the provisions of the CST Act for recovery of the sales tax in respect of the goods sold to the KPTCL by the registered dealer. In view of the finding of fact recorded by the assessing authority which was concurred by the appellate authority and for the reasons stated supra by us and the reliance placed by the learned AGA on the decisions of the Supreme Court, Andhra Pradesh High Court, Gujarat High Court, Calcutta High Court and Madras High Court in the above cases, we answer the questions of law in favour of the Revenue and against the respondent.
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