2023 (9) TMI 561 - TELANGANA HIGH COURT

Levy of higher rate of tax - inter-state sales to which C-forms were filed - burden to prove transfer of goods was not for sale - HELD THAT:- As per clause (1) of Section 6A, the burden is on the dealer to prove that the movement of the goods was not because of sale, but was for transfer of such goods by him to any other place of business or to his agent or principal outside the State.

The burden so cast on the petitioner to prove that the transactions were effected by it are otherwise, than by way of sale has not been discharged initially at the time of filing of returns. Only when the assessing authority has taken up investigation/enquiry, the petitioner had adduced some documentary evidence.

Perusal of the order passed by the Appellate Tribunal clearly reflects that the Appellate Tribunal had considered both factual and legal aspects, recorded elaborate reasons while allowing the appeal and also referred to and relied upon various judgments for its conclusion. The Appellate Tribunal had also discussed the purport of Section 6A of CST Act as well as Rule 14(3) of under CST Act (A.P.) Rules, 1957 and finally, confirmed the order of rejection of the assessing authority on the claim of concessional rate of tax in respect of C-forms.

The petitioner failed to make out any case warranting interference of this Bench with the order passed by the Sales Tax Appellate Tribunal - the question of law framed by the Court, while admitting the revision, deserves to be decided in the negative.