TMI Blog2013 (1) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... Sales Tax Act, 1956, as the said sale will now be an inter-state sale. Disallowance of concessional rate against Form-C as the purchase made by the petitioner is in an “open auction” which cannot be considered as an “inter-state” sale is not a factum of the sale which would define it as an inter-state sale but in order to bring a particular sale under the definition of inter-state sale is both a question of fact as well as law and what the Court has to see is the totality of circumstances and the fact that the goods which have been purchased in State “A” are actually being transported to State “B” which would make it an inter-state sale. The ruling of the State of Bihar and another v. Tata Engineering & Locomotive Co. Ltd. (1970 (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturing and sell of kathha and catechu for which a basic raw material is khair wood . The petitioner had to procure its major portion of khair wood which is the basic raw material for production of kathha through auction purchase and other means of purchase from the State of Uttarakhand. Prior to 9.11.2000 Uttarakhand was the part of the erstwhile State of Uttar Pradesh and the petitioner was enjoying the benefit of Section 4B of the U.P. Trade Tax Act whereby certain concessions were given to the petitioner for purchase of this raw material. After 9.11.2000 the territory from which the kathha was being procured by the petitioner became the part of Uttarakhand and consequently a notification was issued by the State of Uttarakhand o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of section 8 of the said Act no. 74 of 1956. 3. In short, what the said notification states is that such dealers who were getting the benefit under Section 4-B, now under U.P. Reorganisation Act, they would continue to get the concession against Form C of Central Sales Tax Act, 1956, as the said sale will now be an inter- state sale. After the said notification, the petitioner after the purchase of khair wood by way of an auction faced difficulty inasmuch inspite of the said notification the benefit under Section 4-B was not given to the petitioner and instead of concessional rates being charged by the Government he was charged the full rate of tax. Aggrieved the petitioner has filed the present writ petition before this Court. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : 3. When is a sale or purchase of goods said to take place in the course of inter-State trade or commerce. 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. 5. Counsel for the petitioner urges that it is not a factum of the sale which would define it as an inter-state sale but in order to bring a particular sale under the definition of inter-state sale is both a question of fact as well as law and what the Court has to see is the totality of circumstances and the fact th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporation itself, from whom the khair wood was purchased, has prepared the invoice on the strength of which the goods were being transported to Uttar Pradesh and there was enough evidence to consider that it was an inter-state sale. 7. In view of the aforesaid the writ petition succeeds. The petitioner is entitled to get the benefit of notification dated 26.12.2000 provided he gives enough evidence before the said authorities that the goods which he has purchased are to be consumed at its factory at Kotwali Road, Najibabad, District Bijnor (U.P.), which would make it an inter-state sale. It is further clarified that this order will be effective prospectively and shall not effect any other previous transactions which have been made, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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