9911796707
TMI Blog2006 (11) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... in proceedings ref. RF. No. 3 of 2006-07 as illegal, arbitrary, high handed, without authority of law and jurisdiction and set aside the same; and declare that there is no inter-State sale of rice between the petitioner's branch at Kakinada and the head office at New Delhi since the petitioner's head office and its branches are one and the same and constitutes a single legal entity; and also declare that the transactions cannot be declared as inter-State sales since there is no movement of goods from Andhra Pradesh to Delhi which is sine qua non to construe a transaction as inter-State sale; and also declare that the movement of goods from Kakinada to Customs House at Kakinada Port does not amount to inter-State movement of goods; a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent, in substance, to the same effect as the show cause notice issued by the first respondent. Once again the petitioner, it appears, filed its objections. By an order dated August 18, 2006 the second respondent made an assessment treating the entire turnover to be the turnover representing the sale price of inter-State sales. Hence the present writ petition. Heard learned counsel for the petitioner and the elaborate submissions made by the learned Government Pleader for Commercial Taxes. The second respondent, while coming to the conclusion that the entire turnover is liable to tax under the Act, as the sale turnover of inter-State sales, gave his reasons as follows: "Regarding the point of the dealer that there is no movement of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the State of Andhra Pradesh, there is an inter-State sale of the goods. At page 7 of the assessment order, the second respondent holds that since the purchase price of the exported material was paid by the petitioner by way of account transfer from New Delhi to Kakinada, therefore, he comes to the conclusion that the property in the commodity purchased by the petitioner-company at Kakinada was transferred to the petitioner-company at New Delhi for a valuable consideration. The relevant portion reads as follows: ". . . Thus there is a transfer of property in the rice purchased by S.H. (India) Ltd., Kakinada from various rice dealers in A.P. to S.H. (India) Ltd., New Delhi which then carried out the export, as S.H. (India) Ltd., New D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act stipulates such a levy, which reads as follows: "6. Liability to tax on inter-State sales.--(1) Subject to the other provisions contained in this Act, every dealer shall, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, not being earlier than thirty days from the date of such notification, be liable to pay tax under this Act on all sales of goods other than electrical energy effected by him in the course of inter-State trade or commerce during any year on and from the date so notified:" The expression, whether a particular sale took place in the course of inter-State trade or commerce, is required to be decided in accordance with the stipulation under section of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a territory of Delhi purchased a commodity in the State of Andhra Pradesh, does not make the sale interState sale so long as the goods do not move out of the territory of Andhra Pradesh pursuant to such a purchase. It is not the case of the respondents that pursuant to the purchase made by the petitioner-company, the goods moved out of the State of Andhra Pradesh, i.e., to Delhi, where the registered office of the petitioner-company is located. On the other hand, after the purchase, the goods were directly exported through the Port of Kakinada, which is also situated in the State of Andhra Pradesh. The more interesting finding recorded by the second respondent, as can be seen from extract (1) above, is that the respondent is of the opi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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