TMI Blog1971 (6) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... . No. 13 of 1969 relates to the assessment year 1954-55. When proceedings were initiated for levy of tax on the turnover relating to the sales to the firms in Fort Cochin, the assessee objected contending inter alia that the sales were in the course of inter-State trade exempt under article 286(1)(b) of the Constitution and no tax was exigible. This contention did not find favour with the assessing authority and tax was levied. The appeals filed by the petitioners before the Appellate Assistant Commissioner and the Sales Tax Appellate Tribunal were dismissed. 3.. The contention raised for the petitioners is that the sales were in the course of inter-State trade and commerce, having been effected by transporting the goods from Travancore-C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of export predicated connection between the sale and export, the two activities being so integrated that the connection between the two cannot be voluntarily interrupted without a breach of the contract or the compulsion arising from the nature of the transaction. To occasion export there must exist such a bond between the contract of sale and the actual exportation, that each link is inextricably connected with the one immediately preceding it. The principle thus is that the sales to be exigible to tax under the Act must be shown to have occasioned the movement of the goods or articles from one State to another. The movement must be the result of a covenant or incident of the contract of sale. 4.. The point which requires determination i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g or agreement or even from any of the transactions which links the sale to export. 6.. In K.G. Khosla and Co., (P.) Ltd. v. Deputy Commissioner of Commercial Taxes, Madras Division, Madras[1966] 17 S.T.C. 473 (S.C.)., it was made clear that before a sale could be said to have occasioned the import it was not necessary that the sale should have preceded the import, and that all that was required was that the sale had occasioned the import. In the cases before us the goods were brought from the Travancore-Cochin State to the Madras State as a result of the contract of sale between the petitioners and the firms at Fort Cochin and we have no doubt that the movement was occasioned by the contracts of sale. 7.. Counsel for the revenue conten ..... X X X X Extracts X X X X X X X X Extracts X X X X
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