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2009 (2) TMI 753 - PUNJAB AND HARYANA HIGH COURTWhether, on facts and circumstances, the nature of transaction is inter-State sales terminating at the hands of Shri Muni Lal or at the hands of M/s. Dada Motor Garage 'physically in reality' who appropriates the goods and passes the same to the customers after getting the amount, giving the receipts, the statement of collection, keeping watch (responsibility of shortage, damage or any such loss), carrying out sheltering and service at Jalandhar at the hands and premises of Dada Motor Garage? Whether evidence on the file does not reveal that the contract of appropriation was between M/s. Dada Motor Garage and Lohia Machines Limited, Kanpur and subsequently, M/s. Dada Motor Garage sold/delivered such goods at its premises at Jalandhar? Whether M/s. Dada Motor Garage is engaged in inter-State transaction, thereby covering the present case under the PGST Act, 1948? Held that:- If the transaction of sale stands completed within the State and the movement of goods takes place thereafter, it would obviously be independent of contract of sale and necessarily by or on behalf of the purchaser alone, which would not have any inter-State element. Therefore, there is no doubt left that the sale in the present case is inter-State sale within the meaning of section 3 of the CST Act. Thus, the first question of law is answered against the Revenue and in favour of the assessee. The answer to the second question would also be against the Revenue and in favour of the assessee because there is no evidence on record to prove a contract of appropriation between the company at Kanpur and the assessee, Dada Motors, who might have sold the goods at their premises at Jalandhar. None of those circumstances are present in the instant case nor there are any such findings available on record for us to conclude that the delivery of goods was given to the Dada Motors in pursuance to the contract of appropriation.Therefore, the third question is also answered against the Revenue and in favour of the assessee.
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