TMI Blog2013 (12) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... by transfer of right to use - Leasing of ship - Held that:- there was no transfer of right to use to have an effective control of the Vessel by the charterer under the time charter so as to attract the charge under the provisions of Section 3A of the Act - mere fact that the agreement had been entered into and that the assessee had been paid the hire charges, does not, per se, bring the transaction within the scope of Section 3A of the Act - amendment to the Central Sales Tax Act in including the transfer of right to use any goods as deemed sale was brought in under the definition of sale in Section 2(g) under the Finance Act (No.20 of) 2002, effective from 11th May 2002. In any event, even otherwise, the enlarged definition of sale , available on and from 11th May 2002, can have no relevance to the transaction of time charter for considering the same even by way of a deduction under Section 3A(2)(a) of the Tamil Nadu General Sales Tax Act. Question of considering a deduction under Section 3A(2)(a) of the Act does not arise and it would be in excess of what is contemplated under Section 3A of the Act, or for that matter, beyond the legislative power of a State - This is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re us. Since the issues raised in all these revisions are common and the Tribunal had also considered the issues in respect of Assessment Years 1992-93 to 1994-95 under a common order and with reference to the subsequent years, under a separate order, we feel, it is better that the entire case is dealt with under a common order. 2. The substantial questions of law raised in the Revision cases are as follows: T.C.(R)No.184 of 2006: (i) Whether the Sales Tax Appellate Tribunal is right in holding that both the execution of contract as well as the act of passing of the control/domain of the goods should take place for the transfer to be completed and for levy of tax under Section 3A of the Tamil Nadu General Sales Tax Act, 1959? (ii) Whether the Sales Tax Appellate Tribunal is right in holding that the impugned transactions are eligible for deduction in Section 3-A(2a) of the Tamil Nadu General Sales Tax Act, 1959? T.C.(R) Nos.1563, 1589 and 1590 of 2006: (i) Whether the Tribunal has erred in treating the leasing of ship as not falling under Section 3A of the Tamil Nadu General Sales Tax Act, 1959? (ii) Whether the Tribunal, after accepting all the contentions put forth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments were executed on 25.02.1992 as regards Chennai Valarchi and Chennai Polivu on 25.2.1992 and Chennai Valarchi on 12.1.1993 for M/s.Poompuhar Shipping Corporation Ltd., to transport coal to the Tamil Nadu Electricity Board. It is stated that apart from the above, the assessee also sold ships and old assets. Similar to the transaction relevant to the assessment year 1992-93, the assessee had entered into time charter agreement during the subsequent relevant assessment year too. The terms of the time charter agreement are one and the same. 5. It is seen that the assessee was not originally registered as a dealer under the provisions of the Tamil Nadu General Sales Tax Act (hereinafter referred to as "the Act"). It is stated that on 8.8.1996, the place of business of the assessee was inspected and the accounts were called for and checked. Based on this, the Revenue viewed that the transaction under the charterparty agreement was lease of the ships for valuable consideration, attracting charge under Section 3A of the Act. The Assessing Officer viewed that as per the agreement, there was a transfer of possession of the Vessels to the charterers. Thus, going by the terms of lease, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Apex Court reported in (1990) 3 SCC 481 (British India Steam Navigation Co. Ltd. Vs. Shanmughavilas Cashew Industries and Ors.) and submitted that the agreement has to be read as a whole to ascertain the intention of the parties. After going through the various clauses in the agreement, the Appellate Assistant Commissioner agreed with the assessee that the time charter agreement did not involve transfer of right to use the goods. Thus the assessment under Section 3A of the Act was set aside. As regards the sale of ships, when the contract of sale in respect of specific Vessels was entered into, they were outside the State of Tamil Nadu. In the above circumstances, sale being one of ascertained goods, the assessment made on the sale of ships was set aside. However, on other aspects regarding sale of bunders, the Appellate Assistant Commissioner remanded the same for fresh consideration. On the penalty levied under Section 12(3)(a), for the assessment year 1992-93, the same was reduced; similarly for the other assessment years, penalty stood modified. 8. Aggrieved by this, the Revenue went on appeal before the Tamil Nadu Sales Tax Appellate Tribunal. Agreeing with the Revenue that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3A of the Act. He pointed out that the assessee had received consideration on the transfer of right to use the Vessel by the contracting party. He pointed out that it is not denied by the assessee that M/s.Poompuhar Shipping Corporation had had the possession to use the Vessel for transporting coal from Tuticorin to different places. On the admitted fact that the named Vessel was outside the State of Tamil Nadu for movement to other State, he submitted that it is clear that the cause of action had arisen in Chennai and hence, the same was liable to be taxed under Section 3A of the Act. He further pointed out that even though the Tribunal had accepted that the transaction is exigible to tax under Section 3(a) of the Central Sales Tax Act, it committed a serious error in granting the relief under Section 3A(2)(a) of the Tamil Nadu General Sales Tax Act when that was not the case of the assessee too. On the question as to whether the inter-State trade and commerce would qualify for deduction, on the facts thus fitting in with Section 3A of the Act, no exception could be taken to the order of the Assessing Officer in bringing them to tax under the provisions of the Tamil Nadu General ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Income Tax Vs. Damodaran (V) (SC)) and [1959] 10 STC 584 (The State of Madras Vs. Asher Textiles Ltd.), only to contend that the Tax Case Revisions before this Court are also in the nature of appeal proceedings; that even though the assessee might have succeeded on a different ground and hence there was no Tax Case by it, yet, in a Tax Case filed by the State, it is open to the assessee to place his objections as to the fallacy in the reasoning of the Tribunal that the time charter amounted to transfer of right to use goods and hence, deemed sale assessable under Section 3A of the Tamil Nadu General Sales Tax Act. He submitted that it is no doubt true that the State's appeal was dismissed by the Tribunal holding that the assessee was entitled to claim deduction under Section 3A(2)(a) of the Act. The contention of the assessee throughout had been that the provisions of Section 3A of the Act never stood attracted to the assessee's case. He stated that the fact of mere handing over of possession, by itself, did not attract the chargeability under Section 3A of the Act. Taking us through the nature of the different charterparty agreements and the distinction that time chart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Asher Textiles Ltd.), [1998] 109 STC 205 (Sree Ayyanar Spg. Wvg. Mills Ltd. Vs. State of Tamil Nadu (Mad.)), [1980] 121 ITR 572, at page 579 (Commissioner of Income Tax Vs. Damodaran (V) (SC)), AIR 1970 SC 1 (Shankar Ramchandra Abhyankar Vs. Krishnaji Dattatreya Bapat) and [2008] 16 VST 193 (Srei International Finance Ltd. Vs. State of Orissa and others) and submitted that the transaction under the time charter was more in the nature of service rather than in the nature of deemed sale, to fit in to the concept of "transfer of right to use the property in goods", a phrase as has been judicially interpreted. He pointed out to the decision reported in [1984] 145 ITR 124 (Ker) (Commissioner of Gift-Tax vs H.H. Sethu Parvathi Bai) that in a contract of transfer of right to use, the contracting party must have the possession of the articles or goods to attract the charge Section 3A of the Act. Referring to various Clauses in the agreement and to the provisions under [The Indian] Carriage of Goods by Sea Act, 1925, he submitted that the Bill of Lading in respect of the goods transported rested only with the Master of the Ship, who happens to be the employee of the owner of the Vessel. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in relation to supply of taxable goods for use without transferring right of possession and effective control of the machinery, equipment and appliance. He also referred to the provisions of the Income Tax Act under Chapter XIIG under Section 115V to the definition of "bare boat charter" with reference to the provision relating to income of shipping companies. In the context of the service tax provisions and the well recognized distinct characteristics of the time charter agreement, learned senior counsel submitted that possession given under the time charter was never treated as an effective possession transferred to the charterer so as to result in transfer of right to use goods, to attract the charge under Section 3A of the Act. The consistent view taken by Courts on the nature of possession given under the charterparty agreements, thus assumes significance, that on facts, the possession given to the charterer has to be understood in the context of the services rendered by the assessee to enable the contracting party to transport the coal from one place to another. He also took us through the provisions of the [The Indian] Carriage of Goods by Sea Act, 1925 with reference to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es Tax Laws Validation Act, (Act VII of 1956) as regards the "explanation sales" during the period 1.4.1951 to 6.9.1955. The validation Act passed subsequent to the decision of the Tribunal had the effect of validating the assessments on explanation sales, the correctness of which were pending before various forums. In the revision preferred as against the order of the Tribunal cancelling the assessment, the Revenue contended therein that on the date when the Tribunal passed the orders on the "explanation sales", no doubt, the assessee had the benefit of the decision rendered in the case of Bengal Immunity Co. Vs. State of Bihar reported in (1955) 6 S.T.C. 446. However, subsequent ordnance and enactment had the effect of validating the assessment and hence, the Revenue took the plea that the Tribunal's order was to be set aside. 23. The assessee objected to the Court applying the provisions of the Act to set aside the order of the Tribunal, since the powers of the Court in revision would be limited to considering the question of correctness of the order of the Tribunal made in the light of the law existing when the Tribunal passed the order. Repelling such a contention, this Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neral Sales Tax Act. 26. This Court referred to the decision in the case of Chappan v. Moidin Kutti, ILR 22 Mad 68, holding that the power to review or revise may be confined to points of law or may extend to matters of fact also. 27. In dealing with the scope of advisory jurisdiction under the Income Tax Act, in the decision reported in [1980] 121 ITR 572, at page 579 (Commissioner of Income Tax Vs. Damodaran (V) (SC)), the Apex Court pointed out that on a reference application filed by an aggrieved party, it was open to a non-applicant to ask for a reference of those questions of law also which arise on its submissions but negatived in the appeal by the Appellate Tribunal. The Apex Court pointed out that even though the non-applicant might have succeeded before the Tribunal on some other ground, but rejecting one of the grounds taken therein, nevertheless, it was open to the non-applicant to seek a reference on a point which went against the assessee. The Apex Court pointed out that "it is as if recognising a right in the winning party to support the order of the Appellate Tribunal also on grounds raised before the Appellate Tribunal but negatived by it. " 28. This Court re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee to make his submission as to the nature of transaction, its legal effect and the applicability of Section 3A of the Act to the transaction without which we do not think that one can arrive at the legal effect of the transaction to consider the claims of either party herein relating to the assessment under Section 3A of the Act. It is a well settled principle of law that unless the transactions fall within the four corners of the charging provision, the same cannot be brought to tax under the Act. In this, the State is bound to prove that the transaction in question attracts the charge under the provisions of the Act. Thus this Court is bound to consider the claim of the assessee that the time charter would not attract the charge under Section 3A of the Act. Hence, we overrule the Revenue's objection. 30. Before going into the various contentions of the parties herein, we need to note what a charterparty is, the types of charterparty and how Courts have judicially interpreted certain phrases used therein - in particular, phrases like "delivery", "redelivery" and "possession". The decisions on the various clauses therein, in particular, on "delivery", "redelivery" and "possess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bility of the parties. 33. Charterparties are broadly classified into three general categories - demise or bare boat charter, time charter and voyage charter. Demise charter is one wherein, in return for payment of hire, the possession of the chartered ship is given to the charterer; the charterer provides the crew and pays all running costs and undertakes the responsibility of the ship owner to those, whose goods are carried on in the vessel. Time charter, whether it is for a period or for a trip, are those wherein, for the payment of hire charges, the vessel's employment is put under the order of the charterer, while possession remains with the owner who provides the crew and pays the running costs, excluding the voyage costs such as fuel and cargo. Voyage charters are those by which the owner agrees to perform one or more of the designated voyages in return for the payment of freight. Whether the charterparty is a voyage charterparty or time charterparty or charter by demise or not, depends upon the intention of the parties. 34. According to Black's law Dictionary, a time charterparty is distinct from a charter by demise. Time charterparty is a charter for a specified period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... despite the fact that certain key words are used in most standard forms of the time charter such as "let" "hire", "delivery" and "redelivery", there is no hiring in the true sense" (Refer: The London Explorer 1971 (1) Lloyd's Rep 523. Keeping in line with the well established and well understood characteristic features on time charter, in the decision reported in 99 L.W. 517 (Transworld Shipping Services (I) (P) Ltd. Vs. Owners Other), this Court held that in respect of an interim prayer made for arrest of the ship, for the alleged amount due and payable by the charterer to his agent, neither the legal ownership nor the beneficial ownership or equitable ownership was in the hands of the charterer in the case of time charter agreement. Thus this Court viewed that for the amount due and payable by the charterer, unless the relationship of agency had been established between the owner and the charterer, the question of arrest of the ship did not arise. Time charterparty not being the demise of the ship but a contract for hire of services, thus viewed as not resulting in giving possession to the charterer to result in delivery or redelivery as is normally understood or to be literall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as long since been obsolete. The modern form of time charterparty party is, in essence, one under which the shipowner agrees with the time-charterer that, during a certain named period, the shipowner will render service as a carrier by his servants and crew to carry the goods which are put on board his ship by the time-charterer." Certain phrases surviving in the printed form now used are only pertinent to the older form of demise charter-party. those phrases are, as in the present case, "the owners agree to let the steamer," and "the charterers agreed to hire the steamer". There is no "letting" or "hiring" of the steamer, or anything of the sort here. Then at the end of the period, it was solemnly provided that the vessel should be redelivered by the time-charterers to the ship-owners. "Redelivery" is only a pertinent expression if there has been a delivery or handing over by the ship-owners to the charterers. there never has been anything of that sort here. The ship has at all times been in the possession of the ship-owners, and they simply undertook to do service with their crew in carrying the goods of the charterers. "As I ventured to suggest in the course of the argument, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of possession and effective control of such machinery, equipment and appliances. 40. In the notification issued by the Government of India, Ministry of Finance, to the President, Indian National Ship Owners Association, Mumbai, by proceedings in R.No.146 F, North Block, New Delhi, dated 18th June, 2008, with reference to the charterparty agreement to grant charterparty to the charterer who acquired the right to use the vessel for transportation of merchandise, his own or of another person, or passenger, without having the right of possession and effective control of the vessel, it was pointed out that considering the object being chartering of vessel, the nature of services attracted service tax under Section 65(105)(zzzzj). 41. Chapter XII-G of the Income Tax Act contains special Provisions relating to Income of Shipping Companies. The method of calculating the income in respect of the vessels operated on tonnage basis was sought to be considered in the light of certain definitions therein. Section 115V, containing definitions, reads as follows: Definitions. "115V. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lhi 650 (Indian Oil Corporation Ltd. Vs. Thakur Shipping Co. Ltd.) (Referred Scrutton's "Charterparties"). (vi) Despite the standard wording like "possession", "delivery" or "redelivery", there is no letting, hiring, delivery or redelivery. The owners carry the risk of maritime contract and remain responsible for the safety and the navigation of the ship as when trading for their own account. To use the classic expression from an English decision, "the ship trades on time charterers' account". The key to the bargain for the time charterer is the right to give orders as to employment. 43. In the context of the above, the various clauses in the time charter agreement need to be seen. As already pointed out, the various clauses in the agreements are one and the same. 44. In Line 13 of the charter, it was specifically agreed that the owners of the Vessel had agreed to let and the charterers agreed to hire the said Vessel from the time of delivery. The place of delivery is given under Line 18 as "Vessel to be placed at the disposal of the Charterers, at on passing the latitude of Madras in ballast North Bound on passage to Charterers nominated loadport any time day or night sunday ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vigation of the vessel, insurance, crew, and all other matters, same as when trading for their own account. " 45. In the background of the above-said clauses and the decisions relied on by the assessee, the claim of the assessee is that when there was no possession handed over to the charterer to result in transfer of right to use in the sense of having effective control over the vessel as held by the Courts in the cases relating to deemed sale on transfer of right to use for any purpose, the chargeability to Section 3A of the Tamil Nadu General Sales Tax Act does not arise. Learned senior counsel submitted that what is true and applicable to the characteristics of a normal sale in the matter of handing over possession and control is equally applicable to a case of deemed sale. Thus when there is no handing over of possession in the true sense of the term, the question of assuming effective control does not arise. 46. Section 3A of the Tamil Nadu General Sales Tax Act is the relevant charging provision to levy tax on the deemed sale relating to transfer of right to use any goods for any purpose. Upholding the constitutional validity of the said provision under the Tamil Nadu Ge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery for the purposes of execution of the work for the assessee and there was no transfer of right to use as such, in favour of the contractor. The effective control of the machinery, even while it was in use by the contractor, was that of the assessee. Thus the High Court held that the charge under Section 5E of the Andhra Pradesh General Sales Tax Act was not attracted. 48. Confirming the decision reported in [1990] 77 STC 182 (Rashtriya Ispat Nigam Ltd. Vs. Commercial Tax Officer, Company Circle, Visakhapatnam), in the appeal preferred by the State, in the decision reported in [2002] 126 STC 114 (State of A.P. Vs. Rashtriya Ispat Nigam Ltd. (S.C.), the Apex Court held that so long as the effective control of machinery was with the owner, even while it was in use of the contract done and the contractor was not free to make use of the machinery for work other than the project work or move it out during the period the machinery was in its use, the requirements for attracting the charge did not stand satisfied. The fact that the contractor would be responsible for the safe custody while it was on the site, did not militate against the owner's possession and control of the machinery ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in a transfer of right to use goods, as follows: "To constitute a transaction for the transfer of the right to use the goods the transaction must have the following attributes: a. There must be goods available for delivery; b. There must be a consensus ad idem as to the identity of the goods; c. The transferee should have a legal right to use the goods - consequently all legal consequences of such use including any permissions or licenses required therefore should be available to the transferee; d. For the period during which the transferee has such legal right, it has to be the exclusion to the transferor -this is the necessary concomitant of the plain language of the statute - viz. a "transfer of the right to use" and not merely a licence to use the goods; e. Having transferred the right to use the goods during the period for which it is to be transferred, the owner cannot again transfer the same rights to others." 51. The Apex Court further pointed out that unlike in the case of composite contracts, namely, a works contract, hire purchase contract catering contract, where, by a legal fiction, a divisibility is brought in to the contract to isolate the sale elemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the charging provision, since, as pointed out in the decision reported in [1999] 113 STC 317 (SC) (Aggarwal Brothers Vs. State of Haryana and Another), it is the transfer of right to use and not transfer of goods which attracts the charge under the deemed sale under Section 3A of the Tamil Nadu General Sales Tax Act. 53. Learned senior counsel took us through the decision of the Karnataka High Court reported in 124 STC 426 (Lakshmi Audio Visual Inc. and Anr. Vs. Assistant Commissioner of Commercial Taxes and Anr.), particularly to paragraph 9 of the judgment, on the aspect of possession. Referring to the decision reported in [1990] 77 STC 182 (Rashtriya Ispat Nigam Ltd. Vs. Commercial Tax Officer, Company Circle, Visakhapatnam), the Karnataka High Court pointed out that where a customer entrusted to the assessee the work of achieving a certain desired result and that involved the use of goods belonging to the assessee and rendering of several other services, the goods used by the assessee to achieve the desired result would mean that the same is in the effective and general control of the assessee, in which event, the transaction would not be a transfer of the right to use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Time Charterers. The owners to remain responsible for the navigation of the vessel, insurance, crew, and all other matters, same as when trading for their own account." 57. Clause 58 fixes the responsibility on the owners for any delay in delivery of the Vessel, for loss or damage to the goods on board, etc. The said clause reads as follows: "Notwithstanding anything to the contrary contained therein it is expressly agreed that the Owners only to be responsible for delay in delivery of vessel or for delay during the currency of the charter and for loss or damage to goods on board, if such delay or loss has been caused by want of due diligence on the part of the Owners or their Manager in making the vessel seaworthy and fitted for the voyage or any other personal act or omission or default of the Owners or their Manager. In the event of stoppages/strikes/ restraints by the Ship's personnel, time thus lost to be for owners account. Owners not to be responsible in any other case. Owners not to be liable for loss or damage arising out of or resulting from shore labour strikes, lockouts or stoppages or restraints." 58. Clauses 63 and 67 touch on the owners' right to substitut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el belongs; " 62. Section 344K, appearing in Part IXB of the Merchant Shipping Act, 1958 relating to security of ships and port facilities, defines "company" as follows: "In this part, unless the context otherwise requires, (a) "company" means the owner of the ship who, or any organisation which has assumed the responsibility of operation of the ship from the owner of such ship and who or which has agreed to take over all the duties and responsibilities imposed by the International Safety Management Code;" 63. Section 37 of the Merchant Shipping Act enjoins on an endorsement as to a certificate of change of Master. Where there is a transfer of ownership on ships, Sections 42, 43 and 44 deal with the procedure on transfer of ships and shares. In the background of the special enactment provisions, we hold that the assessee is justified in its contention that the transactions do not attract the charging provisions of the Act. 64. It is no doubt true that the Apex Court, in the decision reported in [2000] 119 STC 182 (20th Century Finance Corporation Ltd. Vs. State of Maharashtra) and the subsequent decision reported in [2006] 145 STC 91 (Bharat Sanchar Nigam Ltd. Vs. Union o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of right to use. In the light of the various decisions on time charter and the provisions of law relating to tax on transfer of right to use goods in the sense as appearing in Section 3A of the Act and similarly worded provisions in the tax enactments of other States, we reject the arguments of the State. On the above grounds, we also reject the reasoning of the Tribunal granting exemption under Section 3A(2)(a) of the Act as inter-State sales on transfer of right to use. 70. It must also be noted herein that the amendment to the Central Sales Tax Act in including the transfer of right to use any goods as deemed sale was brought in under the definition of "sale" in Section 2(g) under the Finance Act (No.20 of) 2002, effective from 11th May 2002. In any event, even otherwise, the enlarged definition of "sale", available on and from 11th May 2002, can have no relevance to the transaction of time charter for considering the same even by way of a deduction under Section 3A(2)(a) of the Tamil Nadu General Sales Tax Act. In the decision reported in [2000] 119 STC 182 (20th Century Finance Corporation Ltd. Vs. State of Maharashtra), the Apex Court pointed out in paragraph 58 that with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the transaction attracted charge under Section 3A of the Act, it went ahead to hold that the transaction fell for consideration by way of deduction under Section 3A(2)(a) of the Act. There is hardly any discussion as to how the transaction had been brought under Section 3A(2) of the Act. As already pointed out, we do not agree with the stand of the Revenue that it is a local sale. In that event, the question of considering the claim for deduction as such, does arise for consideration. So too the question of a deduction as a deemed sale under the Central Sales Tax Act. This is quite apart from the fact that there is no provision to consider the same under the Central Sales Tax Act at all for want of authority to deal with a deemed sale under the definition of sale in the Central Sales Tax Act. As already pointed out, going by the terms of the time charter and the nature of the agreement, particularly with reference to possession, we have no hesitation in setting aside the order of the Tribunal in toto, thereby holding that the transaction would not attract the provisions of Section 3A of the Tamil Nadu General Sales Tax Act. 72. As far as the question raised on the taxability of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the named ships under the sale agreement were positioned outside Tamil Nadu. The log book document called "protocol of delivery and acceptance" evidencing sale and delivery, clearly gives the details as to the sale of the named ships outside Tamil Nadu and their location. Thus, going by the facts found by the Tribunal based on materials, we have no hesitation in rejecting the Revenue's case in respect of T.C.Nos.1590 and 1563 of 2006. Even in respect of T.C.No.184 of 2006, it is seen from the documents filed before this Court that at the time of entering into the sale of the named ships, it was found that the ships were not within the State of Tamil Nadu. 75. Except for contending that the sale of ships is assessable under the Tamil Nadu General Sales Tax Act, no material is placed before us to challenge the findings of the Tribunal on the sale of specifically named ships. In the circumstances, we agree with the assessee that having regard to the fact that the agreement is with reference to the sale of specific Vessel by name, we have no hesitation in holding that all these being specific goods located outside the State of Tamil Nadu, the transactions are not chargeable to tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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