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2017 (8) TMI 141 - HC - VAT and Sales TaxStock transfer of inter-state sale - The specific case of the petitioner is that the goods which are in semi finished condition are stock transferred to their branch factory at Haryana where local purchases are made and the product is made into finished product and sold to the customers in Haryana who are three automobile giants in India - The allegation against the petitioner is that purchase orders are placed by the purchasers in Haryana, the entire manufacturing activities are carried out in Coimbatore transferred to Haryana where there is no manufacturing done and the goods are sold in Haryana and it is not a case of stock transfer but a case of interstate sale and the State of Tamil Nadu is eligible to tax the transaction. Held that: - mere mentioning of the words that the particulars were incorrect or untrue is not sufficient and what is required to be done is to conduct an enquiry and unless details are found to be writ with fraud, misrepresentation or collusion or suppression of material facts, on a mere change of opinion, the findings could not be disturbed under Section 16 of the Act. The Appellate Authority applying the legal position in the case of Ashok Leyland Limited [2004 (1) TMI 365 - SUPREME COURT OF INDIA] held that re-assessments were illegal and without jurisdiction. The Appellate Authority made an observation that there is a need to re-look at the contents of Form F and the provisions of Section 6(A)(2) of the CST Act, especially in view of the interpretation placed by the Hon'ble Supreme Court in the case of Ashok Leyland Limited. This has led to the incorporation of sub-section (3) in Section 6(A) of the CST Act. However, the impugned assessments are much prior to the said amendment. The impugned re-assessment proceedings are without jurisdiction. In the light of the said conclusion, it is not necessary for any other exercise much less a fact finding exercise - petition allowed - decided in favor of petitioner.
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