TMI Blog2015 (12) TMI 468X X X X Extracts X X X X X X X X Extracts X X X X ..... il Nadu, reported in [1981 (7) TMI 204 - SUPREME COURT OF INDIA] and also by applying the view of the TNTST, Chennai in the cases, was of the firm view that the transaction cannot be considered as local sale, but only as inter state purchase and the same was not liable to tax under the TNGST Act 1959 at the point of last purchase in the State and accordingly allowed all the five appeals. - As the findings rendered by the Tribunal are based on material facts and supportive documents and sustained by sufficient reasoning, we find no reason to interfere with the same. - Decided against Revenue. - T.C. (R) No.40 of 2015 - - - Dated:- 3-6-2015 - MR. R.SUDHAKAR AND MS. K.B.K.VASUKI, JJ. For The Petitioner : Mr.Manohar Sundaram, AGP (T) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y under section 16(2) for the years 1986-87, 1987-88, 1989-90 and under section 12(3) of the Act for the Assessment year 1991-92 as levied by the Assessing Officer and as sustained by the Appellate Assistant Commissioner. Aggrieved against the same is the present Tax Case Revision by the State before this court. 3.The learned Additional Government Pleader (Taxes) appearing for the Revision petitioner has, in support of his contention that the transaction in question is only the local sale, reiterated the same points as raised before Authorities below that the goods remained the property of the Federation and the sale was completed in Tamil Nadu, after the payment was made and thereafter, the goods were delivered. 4.Whereas, the respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the view of the TNTST, Chennai in the case in TC(A) Nos.2803 to 2805 of 1997 and TC (R) Nos.112 and 114 of 1998 etc dated 1.11.1999, was of the firm view that the transaction cannot be considered as local sale, but only as inter state purchase and the same was not liable to tax under the TNGST Act 1959 at the point of last purchase in the State and accordingly allowed all the five appeals. 6.For better appreciation, the findings of the Tribunal in paras 6 to 8 of the impugned order are extracted below: 6.We heard the arguments put forth by the learned Authorised Representative and the learned Additional State Representative and carefully examined the records produced at the time of hearing along with the assessment records. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 delivered to a carrier or other bailee for transmission, the movement of the goods shall, for the purposes of clause (b), be deemed to commence at the time of such delivery and terminate at the time when delivery is taken from such carrier or bailee. Explanation: 2 Where the movement of goods commences and terminates in the same State, it shall not be deemed to be a movement of goods from one State to another by reason merely of the fact that in the course of such movement the goods pass through the terr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to another cannot be denied. Another point relied on by the learned Additional State Representative and the Appellate Assistant Commissioner is that since the property in goods have been transferred to the appellants in this state and as long as the payment was made the ownership of the goods remains with the Federation. Hence, the disputed transactions have to be considered as local sales. We have given careful consideration with reference to the facts of these cases. It is an admitted fact that the Federation has delivered the goods only after receipt of the payment in Tamil Nadu from the Godown. Because of this factor, the disputed transaction cannot be considered as local sale as per the decision of the Hon'ble Supreme Court in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to by the buyers regarding specific quantity. In the sale bill, the buyer has been mentioned as Annamalaiyar Mills Ltd., (the buyers) the sellers (Federation). In the lorry way bill accompanied the goods also has been mentioned the buyer as Annamalaiyar Mills and seller as Maharashtra State Cooperative Cotton growers Marketing Federation Ltd., Bombay. The above records clearly show that there is an interstate movement of cotton, which has been termed as local purchase by the Assessing Officer. The transactions are similar to the case decided by the TNTST, Chennai, in the case reported in TC(A) 2803 to 2805 of 1997, TC (R) no.112 and 114 of 1998 etc. Dated 1.11.1999. 8. We have also verified the fact with reference to the point mention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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