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2020 (10) TMI 205 - HC - VAT and Sales TaxInter-state sale or local sale - inter-State sales to other States by the petitioner, in pursuance to agreement of sales - assessable under CST Act, 1956 or TNGST Act, 1959 - fall under section 3(a) or 3(b) of the CST Act? HELD THAT:- The Seller in the present case is only M/s.Baynee Trading Company, who made the inter-State Sales and as per the pre-existing contract only the goods were transited by the Assessee to M/s.Gayathri Trading Company of Pondicherry and freight was also borne by the Assessee. In view of this admitted and clear facts, we are of the clear opinion there is nothing to establish that the sales in question are intra-State Sales leviable with local sales tax under TNGST Act and when the same transaction having already been taxed under the previous CST Act in the hands of M/s.Baynee Trading Company at 4% against 'C' Forms issued by the purchaser M/s.Gayathri Trading Corporation of Pondicherry cannot be taxed again as local sales in the hands of the Appellant M/s.National Engineering Industries. The reason given by the learned Tribunal in its impugned order cannot be appreciated, that merely because the two parties viz., the Assessee M/s.National Engineering and M/s.Baynee Industries were located within the State of Tamil Nadu at Chennai, no inter-State sales could have taken place - this view taken by Tribunal also against the well established principles of inter- State Sales as envisaged under Section 3(a) of the CST Act, 1956. Appeal allowed - decided in favor of assessee.
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