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TMI Blog1997 (8) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... ods were transported from this State to Kerala. The consignor of the goods was the fabricator, who had entered into contractual arrangements with the assessee, and the consignments were made to the customers of the assessee in Kerala. The assessee had furnished "C" forms to the suppliers and had directed them to effect delivery of the goods to the assessee's customers in Kerala. He had obtained form E-1 from his suppliers as also form "C" from the customer in Kerala and furnished the same to the authorities. 3.. There is no written contract as between the assessee and the supplier both of whom are carrying on business within the State. The documents considered by the Tribunal and other authorities, include the lorry receipts which shown th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tial that it takes place in the State in which the movement terminates. There is no bar to the seller as also the purchaser being within the same State. A contract of sale may be entered into the State wherein the goods are at the time of contract, or such a contract can be entered into in a different State. What is material for the purpose of section 3 is the movement of the goods from one State to another as a result of a sale or purchase, and it is not essential that a direction for the movement of the goods be expressly set out in the contract. It can also be incidental to the transaction of sale. These proposition can be gathered from the decisions of the apex Court in the case of Tata Iron and Steel Co. Limited, Bombay v. S.R. Sarkar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as required to send the goods to Kerala as an essential condition of the sale is not in dispute although there is no written agreement. The assessee had directed the supplier to send the goods to the assessee's customer at Kerala and to furnish to the assessee form E-1. 7.. The Tribunal and the authorities below have held that the transactions between the supplier and the assessee do not amount to inter-State sale, as in their view the assessee had taken delivery of the goods from the supplier within this State, and had himself placed the goods on the lorries for delivery to its customer at Kerala. The material relied on by the Tribunal to reach that conclusion is a slip which shows the payment of Rs. 100 as cartage charges, for carting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le.
9.. The finding given by the Tribunal that the sale by the supplier to the assessee did not constitute the first inter-State sale, and therefore, the assessee is not entitled to exemption in respect of the sales effected by him by way of endorsing the lorry receipts to its customer cannot be sustained. Under section 6(2) of the Act the second sale so effected by the assessee is required to be exempted and the assessee was entitled to the exemption as claimed. Admittedly, in respect of these transactions form E1 from the supplier as also form "C" from the assessee's customer in Kerala had been produced.
10.. The impugned order of the Tribunal is therefore, set aside and this tax case is allowed. No costs.
Petition allowed. X X X X Extracts X X X X X X X X Extracts X X X X
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