TMI Blog1987 (8) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... he question involved in this appeal is whether the respondent herein M/s. Kasturi Lal Har Lal is liable to the State of Uttar Pradesh for payment of the Central sales tax in respect of the transactions of sale of coal. The Sales Tax Officer in this case passed an order making the respondent liable for the payment of tax on certain transactions daring the period from 1st October, 1965 to 31st March, 1966, amounting to Rs. 9,08,548.81 and tax liability was imposed at the rate of 2 per cent thereof amounting to Rs. 18,170.98. The Sales Tax Officer found that the assessee carried on business in coal. The Sales Tax Officer noted that the bilties (R. Rs.) concerning this kind of sale of coal had been prepared in the name of the dealer. The dealer endorsed these bilties (R. Rs.) and gave these to the diverse parties in U.P. The parties in U.P., on receiving these bilties, got the goods released. The dealer admitted that the bilties (R. Rs.) having been endorsed to the parties in U.P. were given to them at the time, while the goods were in the state of movement between Bihar and U.P. The bills connected with bilties (R. Rs.) of this kind had also been prepared by the dealer and the money ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame State, that State; (ii) in relation to a dealer who has places of business situate in different States, every such State with respect to the place or places of business situate within its territory. On the other hand clause (b) of section 2 defines "dealer" to mean any person who carries on (whether regularly or otherwise) the business of buying and selling, in the manner indicated in sub-clause (b). It is not confined to a registered dealer only. Section 3 is the charging section and is in Chapter II dealing with the formulation of principles for determining when a sale or purchase of goods takes place in the course of inter-State trade or commerce or outside a State or in the course of import or export. Section 3 stipulates that a sale or purchase of goods shall be deemed to take place in the course of inter- State trade or commerce if the sale or purchase- (a) occasions the movement of goods from one State to another; or (b) is effected by a transfer of documents of title to the goods during their movement from one State to another. There are two explanations to that section and explanation I provides that where goods are delivered to a carrier or other bailee for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and (b) if the subsequent sale is made (i) to a registered dealer, a declaration referred to in clause (a) of sub-section (4) of section 8, or (ii) to the Government, not being a registered dealer, a certificate referred to in clause (b) of sub-section (4) of section 8. Sub-section (1) and sub-section (2) of section 9 of the Act are material for our present purpose and read as follows: "9. (1) The tax payable by any dealer under this Act on sales of goods effected by him in the course of inter-State trade or commerce, whether such sales fall within clause (a) or clause (b) of section 3, shall be levied by the Government of India and the tax so levied shall be collected by that Government in accordance with the provisions of sub-section (2), in the State from which the movement of the goods commenced. (2) Subject to the other provisions of this Act and the rules made thereunder, the authorities for the time being empowered to assess, reassess, collect and enforce payment of any tax under general sales tax law of the appropriate State shall, on behalf of the Government of India, assess, reassess, collect and enforce payment of tax, including any penalty, payable by a dealer under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere endorsed in U.P. in favour of different parties such a sale would not be an inter-State sale that would have occasioned the movement of goods. If that is the position here which counsel for the Revenue sought to urge then a tax on such sales as an internal sale might have been levied under the U.P. Sales Tax Act. But that would not be the case of sale on a transaction which occasions the movement. For this purpose section 9 provides for the collection and levy by the "appropriate Government". The "appropriate Government" means in relation to a dealer who has one or more places of business situate in the same State, that State or in relation to a dealer who has places of business situate in different States, every such State with respect to the place or places of business situate within its territory. It is not the position in the instant case. It was contended on behalf of the Revenue that in the State of Uttar Pradesh, the concerned Sales Tax Officer was fully competent to make the assessment. The High Court was of the view that this argument proceeded on an omission to consider the opening words of section 2 which is the definition clause, and which makes the definitions give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing their movement from one State to another, the sale subsequent to first sale in respect of the same goods being also a sale which fell under sub-section (2) of section 6, the tax shall be levied and collected on a subsequent sale which had been effected by a transfer of documents of title to such goods by a registered dealer in the State from which the registered dealer obtained or as the case may be could have obtained the form prescribed in clause (a) of sub-section (4) of section 8 of the Act in connection with purchase of such goods. Sub-section (2) of section 6 provides that where a sale of goods in the course of inter-State trade or commerce has either occasioned the movement of such goods from one State to another or has been effected by a transfer of documents of title to such goods during their movement from one State to another, any subsequent sale during such movement effected by a transfer of documents of title to such goods to the Government or to a registered dealer other than the Government, if the goods are of the description referred to in sub- section (3) of section 8, shall be exempt from tax under this Act. The proviso stipulates that no such subsequent sale ..... X X X X Extracts X X X X X X X X Extracts X X X X
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