TMI Blog2004 (4) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. 2.. On February 22, 2003 a short tender notice was published by respondent No. 2-Collector, Darbhanga, for supply of 78,087 blankets in the district vide annexure-1 of the writ application. In terms of the said notice, the petitioner submitted his tender on February 27, 2003. The tenders submitted by the petitioner and others were considered by the District Purchase Committee under the chairmanship of respondent No. 2-Collecter, Darbhanga, and the tender of the petitioner was accepted. Thereafter, a supply order for supply of the blankets at the rate of Rs. 135 per blanket was sent to the petitioner at his Panipat residence in the State of Haryana. The supply order (annexure-2), inter alia, provided that the supply of the blankets has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of which Rs. 9,60,426.55 has been deducted and deposited in the Government Treasury by order of the Collector and the same is evident from the letter of the Collector dated December 19, 2003 (annexure-4 to the writ application). 5.. Thus, further assertion made on behalf of the petitioner is that the blankets supplied were woven handloom blankets and they are tax-free under the Haryana General Sales Tax Act, 1973 and the blankets moved from the State of Haryana in pursuance of a supply order and as such the supply was made in the course of inter-State trade and no sale has been effected in the State of Bihar and as such the petitioner has no liability to pay sales tax or additional tax and, accordingly, a direction may be issued for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law on this point is well-settled and there is no need of overburdening this order by citing several cases, suffice it to refer to a Constitution Bench judgment of the apex Court in the case of State of A.P. v. National Thermal Power Corporation Ltd., reported in [2002] 127 STC 280; (2002) 5 SCC 203, wherein the apex Court has held that a sale in the course of inter-State trade has three essential ingredients, namely, (i) there must be a contract of sale regarding inter-State movement of goods; (ii) the goods must actually move from, one State to another, pursuant to such contract of sale, in other words the sale being the proximate or minimum cause of movement; and (iii) such movement of goods must be from one State to another State where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , this Court held that when the movement of the goods from one State to another is an incident of the contract it is a sale in the course of inter-State sale and it does not matter which is the State in which the property passes. What is decisive is whether the sale is one which occasions the movement of goods from one State to another. In Union of India v. K.G. Khosla and Co. Ltd. [1979] 43 STC 457 (SC); (1979) 2 SCC 242, it was observed that a sale would 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 provided, however, that such movement was the result of a covenant in the contract of sale or was an incident of the contract. Similar view was expressed in Sahn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grant of quality certificate by the concerned officer. Therefore, the first condition that there should be contract of sale between the parties is, thus, fulfilled. The second condition that the goods must move from one State to another in pursuance of such contract of sale, is also fulfilled as after the supply order has been passed by the respondent, the goods moved from the State of Haryana to the State of Bihar. In other words, cause of supply of blankets from Haryana to Bihar arose because of acceptance of tender and issuance of supply order by the respondents. The third condition is also fulfilled as movements of the blankets have been made from State of Haryana to Bihar, where on being satisfied with the quality, certificates were i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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