TMI Blog2003 (3) TMI 692X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the notice issued by the said authority. The Joint Commissioner, in his order, has stated that the Kerala dealer who purchased the newsprint from the appellant and consigned the same for printing as news magazines and the resultant news magazines were said to be despatched to Kerala by Sivakasi printers. After the printing what moved out of the State were only news magazines and not newsprint with which the assessee is concerned, and inasmuch as the sale would fall under the purview of the Tamil Nadu General Sales Tax Act, 1959, the order of the Appellate Assistant Commissioner is liable to be set aside. On that ground, the learned Joint Commissioner (CT) (SMR) has set aside the order of the Appellate Assistant Commissioner and passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Sales Tax Act, 1956. To substantiate this contention, we are bound to cite three decisions. In Union of India v. K.G. Khosla and Co. Ltd. [1979] 43 STC 457, their Lordships of the Supreme Court have held: "A sale can be an inter-State sale, even if the contract of sale does not itself provide for the movement of goods from one State to another but such movement is the result of a covenant in the contract of sale or is an incident of that contract." In the instant case, the contract of sale was for transport of newsprint from the factory of the assessee to the dealer in Kerala and finally, the newsprint converted into news magazine was delivered to the purchaser at Kerala. What has happened in-between at Sivakasi is immaterial s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks at it. The movement of the sugarcane from Tamil Nadu to Kerala is the incident of, and is inextricably connected with the sale/purchase. The purchase and transport are but parts of one transaction. They cannot be dissociated in this case. There is no break between the purchase and the movement of the goods to another State, viz., Kerala. It is immaterial, in such a case whether the sale/purchase takes place within Tamil Nadu or within Kerala. So long as the movement of goods is an incident of the sale/purchase it amounts to an inter-State sale/purchase. It is not also necessary that the contract of sale must expressly provide for movement of goods. It is sufficient if the movement of goods is implicit in the sale." All these transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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