TMI Blog1994 (4) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... tri, Dariba, Rajpura, Kolihan and Chandmari. It has also got mines in the State of Bihar at Ghatshila and in the State of Madhya Pradesh. Main activity of the company relates to exploration, prospecting and mining of minerals (copper in particular), extraction and fabrication of metals and manufacture of copper and alloys like brass in various forms including sheets and strips. The copper ore extracted from the mines is sent to the concentrator plant where percentage of copper is increased by the process of conspiration. Concentrated ore is then despatched to the smelting plant and the final product comes out in the form of sheets which are described as cathodes, rods (bars), etc. Commercial Taxes Officer, Special Circle, Bikaner, conducted a survey in October, 1981 and on the basis of this survey he concluded that the transaction of sending the goods to M/s. S.S. Metal Enterprises and Metal Rod (Pvt.) Ltd., Delhi, appeared to be sales effected during the course of inter-State trade and commerce from Khetri. He then issued notices to the two dealers. The files were then transferred to the Commercial Taxes Officer, Special Circle IV, Jaipur, who issued notice under section 7B of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure adopted by the assessee and pointed out that buyers were required to register their annual requirement in advance. The requirement of buyers used to be intimated to the factory, goods were sent from the factory to the depot at Delhi and then the same were disbursed from the Delhi depot. Shri Bapna invited the court's attention to the decision of the Supreme Court in State Trading Corporation of India Limited v. State of Mysore [1963] 14 STC 188 and argued that the procedure adopted by the non-petitioner must be construed as a contract of sale outside the State of manufacture. He also placed reliance on K.G. Khosla and Co. (P) Ltd. v. Deputy Commissioner of Commercial Taxes [1966] 17 STC 473 (SC), English Electric Company of India Ltd. v. Deputy Commercial Tax Officer [1976] 38 STC 475 (SC), Manganese Ore (India) Ltd. v. Regional Assistant Commissioner of Sales Tax [1976] 37 STC 489 (SC), Balabhagas Hulaschand v. State of Orissa [1976] 37 STC 207 (SC), Indian Oil Corporation Ltd. v. Union of India [1981] 47 STC 1 (SC), South India Viscose Ltd. v. State of Tamil Nadu [1981] 48 STC 232 (SC). Shri Bapna drew my attention to annexures A to K in order to emphasise that prospective bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration and Turnover) Rules, 1957 and rule 16-B of the Central Sales Tax (Rajasthan) Rules, 1957 and form F, Shri Khaitan argued that for making a false declaration in form F a dealer is liable to be prosecuted and punished. Section 6-A(2) empowers the assessing authority to make an enquiry in respect of the particulars given in form F. It can then take action against the assessee if the particulars furnished by the assessee are found to be incorrect. This being the position and the assessee having produced form F, before the assessing authority, the same ought to have been treated as conclusive of the fact that the sale of the goods was not effected in pursuance of contract of sale. Shri Khaitan argued that for the purpose of enforcing Central Sales Tax Act, the sales tax authorities are duty-bound to discharge their duties under section 6-A and the only enquiry which could be made in such matters is one contemplated by section 6-A(2). Shri Khaitan argued that in para 63(XXV), the Board of Revenue has made a specific reference to the fact that the assessee has produced form F and this finding of the Board has not been assailed by the department and, therefore, irrebuttable pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the principal officer of the other place of business, or his agent or principal, as the case may be, containing the prescribed particulars in the prescribed form obtained from the prescribed authority, along with the evidence of despatch of such goods. (2) If the assessing authority is satisfied after making such inquiry as he may deem necessary that the particulars contained in the declaration furnished by a dealer under sub-section (1) are true, he may, at the time of, or at any time before, the assessment of the tax payable by the dealer under this Act, make an order to that effect and thereupon the movement of goods to which the declaration relates shall be deemed for the purposes of this Act to have been occasioned otherwise than as a result of sale. Explanation.-In this section, "assessing authority", in relation to a dealer, means the authority for the time being competent to assess the tax payable by the dealer under this Act." "Determination of turnover .......................... 12...................... (5) The declaration referred to in sub-section (1) of section 6-A shall be in form 'F' Provided that a single declaration may cover transfer of goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the non-petitioner cannot be called upon to make the payment of tax in regard to sales allegedly made in the course of inter-State trade. Perusal of the order of the Board of Revenue shows that the Board of Revenue has taken note of various circumstances. The Board concluded: "63. Having considered the contents of the documents, lists and written arguments produced before the assessing authority and the learned Deputy Commissioner (Appeals) as well as 56 documents besides the copies of 'F' forms produced before us, we are convinced that they reflect the course of transaction as under: (i) The assessee-petitioner had established depots at mentioned places and was maintaining them at his own expense. (ii) Bulk quantity of copper, i.e., cathodes, wire bars and chemical fertilizers (T.S.P. and S.S.P.) and other by-products were despatched by the factory at Khetri Nagar, Rajasthan, on requisition in the form of delivery orders issued by the depot offices without any reference to a particular contract of sale or a particular buyer. (iii) The goods were despatched by the factory from Khetri Nagar (Rajasthan) to various depots situated outside the State, and not to any partic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time. (xix) The depot managers have absolute discretion to supply goods of any origin from the huge stock lying at various godowns of the sales offices situated outside the State of Rajasthan. There is every possibility that one customer can be supplied goods of both the origin. (xx) In case of scrap all the activities were performed at Delhi and even the customers were not aware of its movement nor the same was contemplated. No registration was done or offer notes were issued for these goods. (xxi) There was all possibility of diversion of goods after despatch from Khetri as the goods were not manufactured of a particular specification for a particular customer. (xxii) Delivery of wire bars was given against the offer notes of cathodes and vice versa. (xxiii) In case of fertilizers, the distributorship agreement cannot be equated with firm orders and on being convinced with the true legal position the transactions were rightly considered as. sales made outside the State of Rajasthan by the assessing authority while framing final assessment for the assessment years 1977-78 and 1978-79 which was not challenged in any proceeding. (xxiv) The procedure of sales effected b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
