TMI Blog2009 (5) TMI 876X X X X Extracts X X X X X X X X Extracts X X X X ..... hether the sales made by the respondent of cotton yarn is local sale or inter-State sale. The assessment pertains to the years 1998-99 and 1999-2000. The respondent was enjoying sales tax exemption on local sales by virtue of certificate issued by the Industries Department. However, no exemption was available on interState sales. It appears from the correspondence, namely, letter accompanied by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent. During hearing, the Government Pleader produced the assessment records wherein it is seen that the entire turnover involved was returned by the assessee in the CST return filed in form No. 2. In the covering letter issued by the respondent along with return, it is specifically stated that inter-State sales are claimed exempt because of the respondent's expectation of exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the so-called agent. It is patently clear that the introduction of agent and claim of sale to him in Kerala is only to camouflage inter-State sales as local sales to avoid payment of CST. It is also worthwhile to mention that even if goods are lifted by agent, the sale will still be inter-State sale because pursuant to contract of sale the goods moved out of the State. Admittedly goods sold were c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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