TMI Blog1984 (2) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... back to the assessee at its poultry farm. The assessee then transports the chicks in cardboard boxes to Delhi in the vans where the assessee had its head office. The head office delivers the goods to the customers from whom advance orders are received along with 10 per cent of the purchase price and the balance 90 per cent price is received at the time of delivery. From Delhi certain sales are made to local customers and some to customers of the neighbouring States. The assessee had started the business in the year 1969. The Assessing Authority, Karnal, started proceeding for the levy of intra-State and inter-State sales tax. The Assessing Authority came to the conclusion on the basis of the statements of Darshan Singh, accountant of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eyond 48/72 hours unless they were fed and cared properly during this interval. There was no regular godown for storing the chicks at Delhi. Hence, it was necessary to regulate their production on the basis of the orders placed to it by the prospective buyers. (2) That the assessee received 10 per cent advance of the total price at the time of placing an order by the purchasers and the remaining 90 per cent price was to be taken at the time of delivery of the chicks which clearly showed that the chicks were transported from Kulwehri to Delhi in pursuance of a preexisting contract between the assessee and the buyers and from this it was concluded that the appropriation of goods actually took place at Kulwehri and not at Delhi. (3) That t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his common judgment. In the references, we have to proceed to decide the two questions on the basis the statement of the cases forwarded by the Tribunal to this Court which is based on the findings recorded by the Tribunal. However, since the writ petition is also to be disposed of with the references the facts contained therein also deserve to be noticed. While doing so, we find that the admitted position is that the assessee has its poultry farm at Kulwehri, District Karnal, in the State of Haryana, with its head office at Delhi. The Delhi office receives orders and at the time of booking of orders, takes 10 per cent advance and the balance price is received when the delivery is made at Delhi or the goods are despatched at Delhi railway ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... always with the office at Delhi." A reading of the aforesaid two statements along with the circumstances of the case, clearly go to show that the chicks are sent from Kulwehri Farm directly to customers in Delhi or to Delhi railway station for being sent to outside customers for which orders are already received in Delhi by taking 10 per cent advance at the time of booking. Since there is no provision for keeping the chicks in Delhi, they are sent directly from Karnal either to the places of destination or to Delhi railway station for onward despatch by rail to the places of destination outside Delhi. The findings of the Tribunal are in consonance with these facts. It is not a case where the goods are moved to Delhi without any pre-exist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 475 (SC) and Union of India v. K.G. Khosla and Co. Ltd. [1979] 43 STC 457 (SC). On the basis of these two decisions, it is argued that on identical facts it was held by the highest Court of the land that even if orders for supply of goods are received in the head office or the registered office, the supplies made by the factory on receipt of the orders amount to movement as a result of covenant in the contract of sale and it does not matter that the property in goods passes at the head office or the registered office, as the case may be, and not at the place where the factory premises are situate. After hearing the learned counsel for the parties, we are of the view that the two decisions relied upon on behalf of the assessee are clearly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the contract of sale it is a sale in the course of inter-State trade falling under section 3(a) of the Central Sales Tax Act, 1956. It does not matter in which State the property in the goods passes. What is decisive is whether the sale is one which occasions the movement of goods from one State to another. The inter-State movement must be the result of a covenant, express or implied, in the contract of sale or an incident of the contract. It is not necessary that the sale must precede the interState movement in order that the sale may be deemed to have occasioned such movement. It is also not necessary for a sale to be deemed to have taken place in the course of inter-State trade or commerce, that the covenant regarding interState movemen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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