TMI Blog1979 (8) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... ts to the retailers in Delhi is subsequent inter-State sale falling under clause (b) of section 3 of the Central Act or intra-State sale falling under clause (g) of section 2 of the Act? (iii) Whether, on the facts and in the circumstances of the case, the subsequent inter-State sale of coal is exempt from the levy of sales tax under sub-section (2) of section 6 of the Central Act or exigible to tax under the Central Act? (iv) Whether, on the facts and in the circumstances of the case, the sales tax authorities of Delhi have jurisdiction and competence to levy tax under the Central Act on the subsequent inter-State sale of coal made by the dealer by endorsement of the railway receipts to the retailers? (v) Whether, on the facts and in the circumstances of the case, the tax levied under the Act treating the subsequent sales of coal by the dealer, as transactions of inter-State can be deemed to have been levied under the Central Act if the second sales by the dealer are held to be subsequent sales covered by clause (b) of section 3 and held to be taxable under section 6 of the Central Act? (vi) Whether, in the circumstances of the case, the freight charges paid to the railway ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoices covering the cost of coal despatched and the sales tax under the Central Act charged by the colliery owners on the consignments of coal despatched to Delhi would also be in the name of the dealer. On arrival of the consignments the dealer would present the railway receipts before the civil supplies authorities for endorsement on the railway receipts which permitted the import of coal within the Union Territory of Delhi under the provisions of the notification mentioned above. The railway receipts so endorsed by the civil supplies authorities (for purposes of importation) would be endorsed by the dealer in favour of the purchasing retailers in Delhi. The actual delivery of the coal wagons in Delhi would be taken by the purchasing retailers on payment of railway freight to the railway authorities. The landed cost of coal would be paid to the dealer by the purchasing retailers which included the cost of coal, the Central sales tax and the dealer's profit. 4.. All the sales tax authorities held that the sales in question were intraState sales liable to sales tax under the Bengal Finance (Sales Tax) Act, 1941, and were not sales exempt under section 3(b) of the Central Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d or future goods, at the time of their appropriation to the contract of sale by the seller or by the buyer, whether assent of the other party is prior or subsequent to such appropriation." Section 2(h) is the definition of sale price. " 'Sale price' means the amount payable to a dealer as consideration for the sale of any goods, less any sum allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before the delivery thereof other than the cost of freight or delivery or the cost of installation in cases where such cost is separately charged." 5.. The counsel for the dealer contends that the sales in question are effected by transfer of documents of title to the goods, during their movement from one State to another. He contends that the railway receipts are endorsed during the movement of the coal from Bengal/Bihar to the Union Territory of Delhi. Relying on explanation 1 to section 3(b) of the Central Sales Tax Act, the counsel further contends that as coal is carried by the railways (as a common carrier), the movement of goods would terminate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake delivery from the railways at a subsequent time. If taking delivery is the test of termination of movement and not the landing of the goods in an importing State, explanation 1 to section 3(b) of the Central Sales Tax Act would lead to anomalous results. If, after the landing of the goods in Delhi, the railway receipts are endorsed one after another to ten persons and the delivery is taken by the tenth person, say after three months, the movement of goods would on the dealer's interpretation artificially continue for three months after the landing of the goods in Delhi. 8.. The words "at the point of sale by importer............after import in the said territory" occurring in the notification dated 18th January, 1963, clearly suggest that the physical presence of the goods in the Union Territory of Delhi at the time of the sale is the decisive consideration in the matter of the tax liability. The expanded concept of the movement of goods added by explanation 1 to section 3(b) of the Central Sales Tax Act, on our interpretation, does not pose any difficulty, as we have already held that explanation 1 to section 3(b) does not permit a purchaser from the dealer to "expand the mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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