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2013 (1) TMI 551 - HC - VAT and Sales TaxManufactur and sell of “kathha” and catechu - basic raw material “khair wood” is procured through auction purchase - the petitioner was enjoying the benefit of Section 4B of the U.P. Trade Tax Act - after 9.11.2000 the territory from which the “kathha” was being procured by the petitioner became the part of Uttarakhand - benefit of notification issued by the State of Uttarakhand on 26.12.2000 - Held that:- Notification dated 26.12.2000 states that such dealers who were getting the benefit under Section 4-B, now under U.P. Reorganisation Act, they would continue to get the concession against Form–C of Central Sales Tax Act, 1956, as the said sale will now be an inter-state sale. Disallowance of concessional rate against Form-C as the purchase made by the petitioner is in an “open auction” which cannot be considered as an “inter-state” sale is not a factum of the sale which would define it as an inter-state sale but in order to bring a particular sale under the definition of inter-state sale is both a question of fact as well as law and what the Court has to see is the totality of circumstances and the fact that the goods which have been purchased in State “A” are actually being transported to State “B” which would make it an inter-state sale. The ruling of the State of Bihar and another v. Tata Engineering & Locomotive Co. Ltd. (1970 (11) TMI 73 - SUPREME COURT OF INDIA) gives a wide meaning to the definition of inter-state sale. In this petition the petitioner in order to strengthen his argument has also annexed invoice bills which show that the Forest Development Corporation itself, from whom the “khair wood” was purchased, has prepared the invoice on the strength of which the goods were being transported to Uttar Pradesh and there was enough evidence to consider that it was an inter-state sale - writ petition succeeds. The petitioner is entitled to get the benefit of notification dated 26.12.2000 provided he gives enough evidence before the said authorities that the goods which he has purchased are to be consumed at its factory at Kotwali Road, Najibabad, District Bijnor (U.P.), which would make it an inter-state sale - in favour of assessee.
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