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2020 (9) TMI 1258 - HC - VAT and Sales TaxValidity of assessment order - levy of sales tax - local sale or inter-state sale - movement of goods from the State of Maharashtra to Mumbai High - HELD THAT:- On reading of the judgment in THE COMMISSIONER OF SALES TAX VERSUS M/S. PURE HELIUM (INDIA) LTD. [2012 (2) TMI 5 - BOMBAY HIGH COURT], it is evident that this Court has held that movement of goods from the State of Maharashtra to Mumbai High does not constitute a movement from one state to another state; Mumbai High does not form part of any state in the Union of India. Thus the very basis on which revenue sought to assess the sale as an inter-state sale was found absent. This being the position, foundational view taken by Respondent No.2 that movement of goods from the State of Maharashtra to Mumbai High is a sale within the territory of the State of Maharashtra is factually and legally unsound. Article 286 of the Constitution of India, particularly clause 1(a) thereof clearly says that no law of a state shall impose or authorize the imposition of a tax on the supply of goods or of services or both, where such supply takes place outside the state. Prima facie, impugned order of assessment is without jurisdiction. Therefore, as an interim measure, we direct that no coercive steps shall be taken by the Respondents against the Petitioner on the basis of the order of assessment impugned. Stand over to 1st October, 2020.
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