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2008 (10) TMI 605 - HC - VAT and Sales TaxLocal sale v/s inter-State sale - Held that:- In the absence of any positive materials evidencing interState sale, the stray sales as found in the assessment order cannot be termed to be a sale in the course of inter-State trade warranting payment of tax under the Central Sales Tax Act. Therefore the assessing authority clearly erred in assessing the transaction as an inter-State sale and as such the said finding is liable to be set aside. Whether the transaction was a second sale or an inter-State sale was a matter to be decided by the assessing authority and the petitioner has produced the entire documents and on the basis of the said documents only, the assessing authority came to the conclusion that the sale was not a second sale, but a sale in the course of inter-State sale and therefore it cannot be said that the petitioner was liable for penalty. Therefore the levy of penalty is also necessarily to be set aside. W.P. allowed.
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