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2017 (6) TMI 29 - PUNJAB AND HARYANA HIGH COURTWhether in the facts and circumstances of this case the sale was exempted under section 6(2) of the Central Sales Tax Act, 1956 being an inter state sales under Section 3(b) of the said act? - Held that: - The mere mention of the appellant i.e. the purchaser in that sale as belonging to Ahmedabad does not establish an inter-state sale. However, the invoice must be read with the lorry receipt. The LR refers to the lorry/truck number, the date of the transaction and indicates that the goods were to be transported from Rajasthan to Punjab. The sale, therefore, was in the course of inter-state trade or commerce. Whether the subsequent sale, namely, the sale between the appellant and M/s S.T.Cottex Exports Pvt. Ltd. conforms to the type of second sale referred to in Section 6(2)? - Held that: - The subsequent sale referred to in section 6(2) must be a sale during the movement of the goods effected by the transfer of documents of title to such goods to a registered dealer. In other words the subsequent sale must be during such movement i.e. movement caused by the first sale and must be effected by the transfer of documents of title to such goods to a registered dealer. It is not sufficient if the subsequent sale is effected by transfer of documents of title to such goods. It is also necessary that this second sale must be subsequent to the first sale and the subsequent sale must be during the movement of the goods under the first sale. It is true that no tax is payable in respect of these transactions under the Punjab Vat Act. However, the mis-declaration in respect of the consignment would invite the penalty under Section 51(7)(b) nevertheless. Section 51(7)(b) would come into operation, if it is found that there has been an attempt to avoid or evade the tax due “or likely to be due under this Act”. It is necessary to to remand the matter even to avoid the liability under section 51(7)(b) of the Punjab Value Added Tax Act, 2005 on the ground that in any event there was no intention to avoid or evade the tax. Appeal allowed by way of remand.
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