9911796707
TMI Blog1972 (9) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... y certificate under article 133(1)(c) of the Constitution are against the judgment of the Madras High Court which allowed the three writ petitions filed by the respondent under article 226 of the Constitution of India by which it challenged the proceedings proposed to be taken by the Sales Tax Officer under the Madras General Sales Tax Act, 1959 (hereinafter called the Act), and the Rules thereunder in respect of sale transactions in the assessments 1960-61 to 1964-65 and 1966-67 (up to October, 1966). The first petition was for quashing the summons issued under the Act and requiring the respondent to furnish certain vouchers of cotton yarn, branch transfer accounts and particulars relating to the years 1960-61 to 1964-65 and 1966-67 (up t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance with the instructions given by the head office. Where deliveries were made to the respondent inside the State the seller collected the tax due under the Act with reference to item 3 of the Second Schedule to the Act. But, in respect of deliveries made to the respondent's branches outside the State, the Madurai Mills collected tax under section 3 of the Central Sales Tax Act (hereinafter called the Central Act). During the year 1965-66, the respondent transferred to Madras State certain quantities of yarn from the stock so purchased at its branches in the States of Andhra Pradesh and Kerala and sold the same to local dealers. The appellant thereupon called upon the respondent to produce accounts and certain other documents, on the assum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tain cases. Section 6 enjoins that the tax under the Act is in addition to the tax under the Central Act or any other law. Sections 4 and 4-A are as under: "4. Notwithstanding anything contained in section 3, the tax under this Act shall be payable by a dealer on the sale or purchase inside the State of declared goods at the rate and only at the point specified against each in the Second Schedule on the turnover in such goods in each year, whatever be the quantum of turnover in that year." "4-A. (1) Where a tax has been levied and collected under section 4 in respect of the sale or purchase of declared goods and such goods are sold in the course of inter-State trade or commerce the tax so levied and collected shall be refunded to such p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the sale or purchase of declared goods, be subject to the following restrictions and conditions, namely: (a) the tax payable under that law in respect of any sale or purchase of such goods inside the State shall not exceed two per cent. of the sale or purchase price thereof, and such tax shall not be levied at more than one stage; (b) where a tax has been levied under that law in respect of the sale or purchase inside the State of any declared goods and such goods are sold in the course of inter-State trade or commerce, the tax so levied shall be refunded to such person in such manner and subject to such conditions as may be provided in any law in force in that State." The High Court of Madras on the interpretation of the aforesaid pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se what we have to consider is, having regard to the course of transactions of sale which has not been traversed by the appellant, whether the sale by the Madurai Mills pursuant to the orders placed by the respondent, the cotton yarn sold to its branches in Andhra Pradesh and Kerala in respect of which the price was paid in the State of Madras, is an inside sale, and also a first sale in the State. It appears to us that when the cotton yarn was sold to the respondent in Madras as the goods were in the State of Madras when the contract of inter-State sale was entered into, it will be a first sale in the State. Once that sale has taken place, and the goods were delivered in the States of Andhra Pradesh and Kerala, pursuant to that inter-State ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
