TMI Blog1977 (3) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 1,68,503-00 @ 2% 3. 1494/67 Tvl. S.M.R. Durairaj and Co., Matches etc., Elayirampannai 1964-65 Rs.14,61,446-70@ 2% 4. 235/68 Sri Annamalayar Match Works, Sivakasi 1963 - 64 Rs. 3,45,590-29@ 2% 5. 222/61 Tvl. Hindu Matches Ltd., Sivakar 1965-66 Rs. 48,90,790-15 . . . . (Rs. 1,064-62 @ 10% . . . . Rs. 48,89,725-53 @2%) and in the course of argument restricted to . . . . Rs. 48,89,725-53) 2. Tvl. The Premier Match Works, Thiruthangal are the appellants in MTAs. 83/71 and 194/68. Tvl. S.M.R. Durairaj and Co., Elayirampannai are the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te character depends upon the facts and circumstances of each case. The onus of proof heavily lies on the Revenue that the goods moved across the Border of the State in pursuance of pre-existing contract of sale. Under s. 6 of the Central Sales Tax Act, 1956, only sales effected by a dealer in the course of inter-State trade is chargeable to tax. Under s. 3(A) of the Act, all sale shall be deemed to take place in the course of inter-State only if the sale occasioned the movement of goods from one State to another. To constitute inter-State sale, there must be a contract of sale either written or implied and a movement of goods from one State to another as a result of covenant, in the contract of sale. Therefore the duty lies on the assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... individual name of one of the partners of the appellants firm as the policy of the Government was not to issue licence in the names of the firm. 3. The sales of the impugned goods have suffered tax in the other States where the depots of the appellants are located; 4. There was no specific buyer in existence in the other States, when the goods moved to the depots from the State of Tamil Nadu. 5. The Managers who are Incharge of the depots are salaried servants of the appellants; 6. The depots are housed in rented buildings duly insured in the names of the appellants; 7. Depots have been maintaining bank account operated by the authorised managers; 8. Regular day book, ledger and stock accounts are maintained in the depots besid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nadu for the purpose of satisfying a definite contract and for the purpose of which goods so despatched had been delivered to a particular known buyer under a definite contract. These are therefore undoubtedly intra-State sales in the State of Karnataka, Kerala, Pubjab Bombay and Delhi and certainly an out of state sale so far as the State of Tamil Nadu is concerned. All conceivable essential elements of inter-State sale are missing in the instant cases. There is no link between the movement and depot sales. There is no ascertainment of goods at this end. In the circumstances, we hold that the assessments under Central Sales Tax Act on the disputed turnovers in all the five appeals are not sustainable. In the result, all the five appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X
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