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TMI Blog2015 (7) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... d this Court seeking a writ of mandamus directing the Board to issue 'C' Form declaration for the value of materials supplied and as admitted in Ext.P1 certificate. It is submitted by the petitioner-Company that the Board has agreed under clause 14.4 of Instruction to Bidders as follows:- "14.4 Construction of sales Tax declaration forms, as admissible, would be issued to the contractor, on request, for all items (as identified in the price schedule of the bid) to be supplied directly by the contractor as well as for the items to be supplied by the sub suppliers as sale in transit." 2. The petitioner, for executing the works, purchased goods from outside the State and transferred the same to the Board by way of sale In-transit. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from tax. It is apposite to refer Section 6 (2) of the CST Act, which reads as follows: "(2) Notwithstanding anything contained in sub-section (I) or sub-section (IA), where a sale of any goods in the course of inter-state trade or commerce has either occasioned the movement of such goods from one State to another or has been 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 to a registered dealer, if the goods are of the description referred to in sub-section (3) of section 8, shall be exempt from tax under this Act: Provided that no such subsequent sale shall be exempt from tax un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CST Act which shall be either in Form E-1 or Form E-2. Thus, it is admitted now by the petitioner that he has issued "C" Form to the first seller who in turn issued Form E-1 to the petitioner. The petitioner's case is that he has made the sale to the Board during the movement of goods by way of transfer of documents. If that be so, the petitioner will have to issue declaration in Form E-2 to the Board and the Board in turn will have to furnish "C" Forms to the petitioner. Essentially, Section 6(2) of the CST Act refers to movement of goods by transfer of title. Thus, the first sale alone will be taxable and the tax on subsequent sale will be exempted if dealers are registered. Therefore, the Board cannot insist proof of tax paid by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x. However, the proviso to sub-section (2) of Section 6 prescribes further conditions and it is only on fulfilment of those conditions that the subsequent sale stands exempted. If those conditions are not satisfied, then notwithstanding the fact that the sale is a subsequent sale, the exemption would not be admissible to such sub-sequent sales. This is the scheme of Section 6 of the CST Act, 1956." 8. In the light of the above and for the reason that the Board has already admitted supply of materials by the petitioner, they are bound to issue "C" Forms as and when Form E-2 certificate is received from the petitioner. It is always open to the Assessing Authority to consider genuineness of the claim for exemption claimed by the petitioner in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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