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2022 (12) TMI 596 - HC - VAT and Sales TaxExemption from central sales tax (CST) - transit sale - Petitioner had effected sales by transfer of documents of title of the goods during their movement from one State to another - Section 6(2) of the CST Act. - Assessee also contended that under normal business transactions, bills are not raised immediately after the delivery of goods and as the normal business practice, bills are also generally raised after time gap of one to six months. HELD THAT:- The learned tribunal has completely failed to appreciate the ratio of the Judgment of the Hon’ble Apex Court rendered in the case of A& G Projects [2008 (12) TMI 392 - SUPREME COURT] and merely on the basis of an observation as contained in para-13 of the said judgment proceeded to reject the claim of ‘Transit Sale’ of the petitioner. If the aforesaid transaction of ‘Transit Sale’ is deemed to have been rejected, then the transaction would fall under the purview of Section 3(a) of the C.S.T. Act and since, admittedly, the entire tax in respect of the aforesaid sale falling under Section 3 (a) of the C.S.T. Act has been discharged by the petitioner to the respective State Governments, no further tax liability can be imposed by the State of Jharkhand upon the petitioner. At the cost of repetition, there is misinterpretation and misreading of the judgment delivered by the Hon’ble Apex Court in the case of A & G Projects (Supra). The learned tribunal has committed an error by wrongly appreciating that there was pre-determined or pre decided contract of sale between the petitioner and the dealer of the goods at the point of time prior to the sale of goods between the manufacturer of the goods from other inter-state and the dealer of the goods. Even otherwise, the law is now well settled that the tribunal was not supposed to decide an issue which was not the case of the revenue. Decided in favor of assessee.
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