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TMI Blog2015 (7) TMI 1003X X X X Extracts X X X X X X X X Extracts X X X X ..... 56 (for short "the CST Act"), we are of the opinion that the Writ Petitions raise arguable questions. 2) Hence, we grant Rule in each of these Petitions. 3) The Respondents were given time earlier to file an affidavit or response but Mr. Sawant appearing on their behalf states that beyond supporting the reasoning in the orders of the Tribunal, the Respondents do not wish to add anything and on factual matters. Therefore, with the consent of both sides, we dispose of these Petitions finally. 4) It would be convenient only to refer to the facts in Writ Petition No. 6533 of 2015. The Petitioner therein is a registered dealer. It is a private limited company engaged in the business of manufacturing and sale of electrical steel and operates f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt payment of the demand for granting stay and admission of the Appeal. This order was passed under section 18A(5) of the CST Act. The Petitioner was first advised to appeal before the Central Sales Tax Appellate Authority under section 20(1) of the CST Act but having found that the Appeal thereunder was incompetent and not maintainable, it was dismissed on 2nd July, 2014. 6) It is in the above circumstances that the Petitioner has approached this Court in its Writ Jurisdiction. 7) Mr. Sridharanlearned Senior Counsel appearing for the petitioner would submit that the Tribunal will have to determine as to whether the conclusion reached by the Assessing Officer is accurate and correct. That question is yet to be decided. The Appeal is pendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, in the event it being held that the CST Act was applicable and attracted, then, it would be very difficult for the State in which such adjudication is concluded to recover the tax from other State where it is already paid. Mr. Sridharan submits that to meet such an eventuality, section 18A was brought in the statute and upon determination of the issues then it will be open for the authority to make appropriate orders so that the amounts would be brought back. It is not as if there is any serious loss or prejudice because the Petitioner has indeed discharged the liability of local sales tax in the other States. In that regard, our attention was invited to section 22A of the CST Act, whereunder the law constitutes and establishes th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds that during the verification and interaction with dealer, it was revealed that potential customers of the dealer place purchase orders in advance and then confirmation is given to customers, which is generated from the system and then sales/marketing officer at Head Office punches the purchase order in the system, which results into the stock transfer order. Goods are dispatched to concerned depots/directly to customers along with system generated stock transfer invoice or sale invoice and all this does not fulfill the precondition and that the goods transferred should have no nexus with the ultimate sales effected by the concerned branch/agent, transfer should not be in exact quantities of sales effected by agent to indivisible custome ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;F' Forms but looking at the detailed order of the Assessing Officer it is prima facie clear that the transfer is not branch transfer but outside Maharashtra sale. The other fact that has influenced the Tribunal is the huge outstanding tax liability. However, we do not find the Tribunal having adverted to section 18A(5) of the CST Act. Pertinently, this is not a Appeal which the Petitioner Appellant preferred after having exhausted the remedy of Appeal before the Joint commissioner of Sales Tax, which is the first appellate authority. This is an Appeal directly to the Tribunal and that is why section 18A of the CST Act was invoked and applicable. In the circumstances and if this was present to the mind of the Tribunal, as is apparent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required to consider was whether the ultimate dues of the Revenue and if recoverable are secured or there is no proof of the relevant facts in terms of section 18A(5) having been satisfied. In the instant case, the relevant facts including the discharging of the tax liability under the local or general Sales Tax Law has been proved by producing the relevant records including Challans of payments. In the circumstances, we do not find that there was any warrant for imposing any further condition and deposit of a huge sum of Rs. 3,53,12,000/-. 12) In these circumstances, we direct that there will be a stay of recovery of the amount assessed to tax under the assessment order and which is challenged in the Appeal before the Tribunal. Meaning th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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