2003 (7) TMI 750 - HC - VAT and Sales Tax

Summary

Issues:
Revenue's appeal against the Sales Tax Appellate Tribunal's order denying exemption on goods purchased from outside the State for works contract.

Analysis:
The Revenue filed three T.R.Cs. challenging the Sales Tax Appellate Tribunal's order regarding the assessment years 1990-91, 1988-89, and 1989-90. The Tribunal found that goods purchased from outside the State for works contracts with South Central Railway and Military Engineering Services were used in Andhra Pradesh. The Revenue argued that there was no clear finding that the goods were solely used for the contractual obligations. The Tribunal held that the transactions were inter-state sales, not in-transit, and thus not subject to state tax under the A.P. General Sales Tax Act.

The Court noted that the goods purchased were for completing works contracts with the mentioned entities and were utilized in Andhra Pradesh. Referring to the Builders Association of India case, the Court highlighted that inter-state sales are not taxable by individual states. As the Tribunal categorically found the sales to be inter-state and not in-transit, the Court upheld the Tribunal's decision, dismissing the T.R.Cs without costs.