TMI Blog2002 (2) TMI 1298X X X X Extracts X X X X X X X X Extracts X X X X ..... oner-company buys the products at Pondicherry. Space Tech Plastics raises invoices of sale at Pondicherry, effects deliveries and collects prices at Pondicherry. The petitioner does not place orders directly to the factory at Tamil Nadu. Manufacturers collect local tax of 3 per cent under Pondicherry General Sales Tax Act and the petitioner is a second seller. Accordingly, the petitioner claims second sale exemption which was granted by the authorities at Pondicherry. While so, the petitioner-company was shocked to know that its sales at Pondicherry was treated as inter-State sales at Pondicherry by the Tamil Nadu Government authorities. Therefore, there is a threat of assessment at 10 per cent under penalty thereon in the absence of "C" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, they are constrained to come before this Court for relief. The respondent-authority cannot brush aside the serious threat of assessment by the Commercial Tax Officer against the sales of Space Tech Plastics Private effected at Pondicherry which is erroneously treated as inter-State sale of Tamil Nadu. The issue of "C" form in such circumstances is only to render assistance to the suppliers and it cannot be treated as impermissible. The respondent is only an agent of the Central Government in the matter of issuing declaration in form "C" and cannot ignore the notice dated August 31, 1994 to the manufacturers by Tamil Nadu. The petitioner repudiate the notice of the Commercial Tax Officer, Ponneri, as erroneous in law. In fact the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n within the Union Territory of Pondicherry. The petitioner has no locus standi in respect of the assessment made by the tax authorities in Tamil Nadu in respect of M/s. Space Tech Plastics Private Limited. The petitioner cannot help the said company by issuing the "C" form declaration contravening the provisions of Central Sales Tax Act. Therefore, the writ petition is devoid of any merits and is liable to be dismissed. 4.. The counsel for the petitioner relies upon a decision of the Supreme Court in Sahney Steel and Press Works Ltd. v. Commercial Tax Officer [1985] 60 STC 301, where the facts are almost similar to the present case. The petitioner in that case was a company engaged in manufacture and sale and had its factory as well as r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ermitted to avail the concessional rate envisaged by section 8(1) read with section 8(4) of the Act. In that case, the Supreme Court held that even if the customer placed an order with the branch office and the branch office communicated the terms and specifications of the order to the registered office and the branch office itself was concerned with the despatching and billing and receiving the sale price, the orders were placed with the company and for the purpose of fulfilling that order, the manufactured goods commenced their journey from the registered office in the State of Andhra Pradesh to the branches outside the State for delivery of goods to the customers. Both the registered office and the branch office were offices of the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a division Bench of this Court held: "Rule 9 of the CST (Andhra Pradesh) Rules, 1957 directs that every registered dealer shall apply to the notified authority and obtain from him adequate number of forms of declaration 'C' forms, for use by him at the time of receipt or purchase of goods as mentioned in sub-section (1) of section 6-A or sub-section (4) of section 8 of the Act, on payment of the costs and on production of the receipt or challan in proof of such payment along with the application.......... Rule 10 enjoins upon every registered dealer the duty to maintain the register in form XIII, showing a true and correct account of such 'C' forms and the allied matters. Thus from the reading of the above provisions it is clear that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e prior to purchase of the goods. In that case, the Madras High Court has held that: "...........in my view, the petitioners are entitled to have themselves registered as dealers under section 7(2) and consequently are entitled to the supply of 'C' forms for use in their purchase of goods in the course of inter-State sale or trade or commerce at the concessional rate. The further question whether the goods have been rightly purchased for any one of the approved and permitted purposes and whether there was sufficient compliance or noncompliance or violation of the terms of the registration certificate or as to whether the 'C' forms issued have been misused by the registered dealer shall be considered only at the subsequent and appropriate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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