TMI Blog2006 (3) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... nd taxable turnover at Rs. 7,67,146.36 and Rs. 1,36,303.21, respectively. While fixing the turnover, assessing authority allowed Rs. 6,30,843.15 being accommodation sale (sale in transit) since it was supported by E1 declaration. Assessment was completed by the assessing authority by order dated July 31, 1995. Deputy Commissioner invoking the powers under section 35 of the Act set aside the assessment order and remanded the matter back to the assessing authority for fresh disposal in accordance with the findings rendered by him in his order dated June 17, 1992. Deputy Commissioner found that the exemption granted for accommodation sale was not in order. Aggrieved by the same, the assessee took up the matter in appeal before the Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... read with section 6(2) of the Central Sales Tax Act, 1956 would not come to the rescue of the assessee. Counsel submitted that the goods reached its destination at Kunnamkulam in March 1990 and the assessee has not produced the documents of title during transit. Hence counsel submitted that the Deputy Commissioner is justified in invoking the powers under section 35 of the Act. Assessee is a dealer in paper who used to purchase paper from various paper mills in other States. Goods were purchased by the assessee from M/s. Sree Murugan Industries, Madurai against sale invoice No. 9 dated July 14, 1990 for Rs. 44,268.25. Goods purchased had arrived at the parcel office at Kunnamkulam in the month of March 1990. According to the assessee, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een effected by a transfer of documents of title to such goods during their movement from one State to another any subsequent sale during such movement effected by a transfer of documents of title to such goods shall be exempted from tax. Section 3 is also extracted for easy reference: 3. When is a sale or purchase of goods said to take place in the course of inter-State trade or commerce. A sale or purchase of goods shall be deemed to take place in the course of inter-State trade or commerce if the sale or purchase, (a) occasions the movement of goods from one State to another; or (b) is effected by a transfer of documents of title to the goods during their movement from one State to another. Explanation 1. Where goods are de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... read section 6(2) of the Act would show that only when sale or purchase of goods is effected by a transfer of documents of title to the goods during their movement from one State to another, the assessee would be entitled to get exemption under section 6(2) of the Act. Facts would indicate that in March 1990 goods reached its destination. No evidence has been adduced by the assessee to show that there was inter-State sale while the goods moved from one State to another. The decision in Guljag Industries' case [2003] 129 STC 3 (Raj) is not applicable to the facts of this case and it could be distinguished on facts. That was a case where assessee had purchased chemicals in the course of inter-State trade from manufacturers/suppliers from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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