TMI Blog1993 (4) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... ssary to examine the submission of Sri Poti that the State of Tamil Nadu was not competent to impose such a condition under the Sugarcane (Control) Order, 1966. - Civil Appeal No. 1965 of 1977 - - - Dated:- 13-4-1993 - JEEVAN REDDY B.P. AND VENKATACHALA N. JJ. P.S. Poti, Senior Advocate (P.K. Pillai and Dilip Tandon, Advocates with him), for the appellant. P.R. Seetharaman and S. Dhananjayan, Advocates, for the respondent. -------------------------------------------------- ORDER This appeal arises from the judgment of the Madras High Court in a sales tax revision case. The appellant is a co-operative sugar factory having its sugar factory at Chittur in the Kerala State. Inasmuch as sufficient quantity of sugarc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant is both-consignor and consignee-and not as the seller and the purchaser.) On the above facts, the sales tax authorities of Tamil Nadu held that the sale of sugarcane has taken place within the State of Tamil Nadu and accordingly levied the purchase tax under the provisions of the Tamil Nadu General Sales Tax Act, 1959. The appellant disputed the levy contending that it was an inter- State sale within the meaning of clause (a) of section 3 of the Central Sales Tax Act, 1956 and, therefore, not exigible to tax under the Tamil Nadu General Sales Tax Act. The matter ultimately reached the High Court of Madras. On a consideration of the above circumstances, the High Court concluded that inasmuch as the sale took place within the State o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -of sale or purchase. A case of cause and effect-the cause being the sale/purchase and the effect being the movement of the goods to another State........... It is immaterial whether a completed sale precedes the movement of goods or follows the movement of goods, or for that matter, takes place while the goods are in transit. What is important is that the movement of goods and the sale must be inseparably connected............ Sri Sehgal is equally not right in saying that movement of goods from the State of U.P. to other State(s) is immaterial and that the U.P. Legislature is competent to tax each and every purchase that takes place within that State. Ordinarily, it is so, but where a sale or purchase, though effected within the Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hase sugarcane in Coimbatore and Pollachi taluks only with a view to and exclusively for the purpose of transporting to its factory in Kerala. Whatever was purchased was transported to the appellant's factory in Kerala. It must, therefore, be held that this is a case where the movement of goods was occasioned by sale by the farmers or by the purchase by the appellant, whichever way one looks at it. The movement of the sugarcane from Tamil Nadu to Kerala is the incident of, and is inextricably connected with the sale/purchase. The purchase and transport are but parts of one transaction. They cannot be dissociated in this case. There is no break between the purchase and the movement of the goods to another State, viz., Kerala. It is immateria ..... X X X X Extracts X X X X X X X X Extracts X X X X
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