Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

Hindustan Zinc Limited Versus State of Andhra Pradesh and others

2011 (12) TMI 649 - CENTRAL SALES TAX APPELLATE AUTHORITY

Appeal No. 358/CST/2010 - Dated:- 9-12-2011 - P.K. Balasubramanyan, J. B.L. Narasimhan and Pawan Shree Agrawal, Advocates, for the appellant G.N. Reddy and Ravi Shankar, Advocates, for the respondents ORDER P.K. BALASUBRAMANYAN J. (Chairman)-The assessee, M/s. Hindustan Zinc Ltd., is the appellant in this appeal under section 20 of the Central Sales Tax Act, 1956. The appellant challenges the order of the Sales Tax Appellate Tribunal of Andhra Pradesh in an appeal under section 18A of the Act. H .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

arise, but also to reassess the facts and consider the correctness of the inference drawn by the authorities below including the State Tribunal. The position appears to be this, except that this authority may have to remember while entering into an appreciation of the evidence and the inferences drawn by the authorities below and the State Tribunal, that it acts as the third court of the appeal and the restriction that would be inherent in the context of this Tribunal being the third appellate .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ry. The zinc and lead manufactured by the various smelter plants are being transferred to Jamshedpur stock point and Calcutta stock point. These stock points received zinc and lead also from other smelter plants located in other States. In the concerned assessment year 1985-86, the appellant had not disclosed the nature of the transactions now involved. The transactions involved are the supply of zinc to M/s. Indian Iron & Steel Company Limited (IISCO) and to M/s. Tata Iron and Steel Company .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

8377; 50,000 paid while forwarding the orders, could be forfeited by the appellant. On information gathered in respect of these transactions from IISCO and TISCO, the assessing officer issued a notice to the appellant to show cause why the two transactions involved here, could not be assessed to tax under the Act. The show-cause notice indicated that it was found that it was pursuant to orders placed on the branch office of the appellant that the goods were sent to the respective buyers for supp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on the branch by IISCO and TISCO, but that the goods were transferred to the branch at Calcutta by way of stock transfer and that the sales were effected in West Bengal from Calcutta and there was no inter-State movement of goods within the meaning of sections 3 and 6 of the Act. The appellant is seen to have even pleaded ignorance of the orders of purchase secured by the branch office at Calcutta from IISCO and TISCO based on which the disputed transactions originated. The assessing officer co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

up the matter in appeal. The appellate authority, the Deputy Commissioner (CT), on a reappraisal of the materials, came to the conclusion that the movement of goods was occasioned by the firm orders for purchase placed by the IISCO and TISCO and that the sales came within section 3 of the Act and liable to tax under section 6 of the Act. The appellate authority noticed the conditions of the offer and the acceptance of the offer. He noticed that as far as the order placed on TISCO was concerned, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g to it were significant. It noticed that the buying companies had placed orders of their requirement with the branch. The orders were placed in the beginning of the year. The case of the appellant-company that it had no knowledge of placing of orders by IISCO and TISCO on the branch at Calcutta was unbelievable. It noticed that there was an offer for sale of goods received by the buying companies before they placed orders for purchase. The offer for sale made by the appellant-company spelt out .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed or ₹ 50,000 whichever was less, should be remitted with the acceptance, in the form of a bank guarantee towards security deposit and on failure to lift the entire quantity, the security deposit will be forfeited. It proceeded to infer that the terms and conditions of the offer and the acceptance thereof by IISCO and TISCO indicated that there was a conceivable link between the sale and the movement of goods from one State to another. It proceeded to examine the purchase orders placed by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ppellant, that the way-bill also showed the appellant as the consignor and the consignee, that the stock transfer invoice, the insurance policy, the octroi paid by the appellant in its name and the permit issued by the sales tax authorities of Bihar showing the appellant as the consignor and the consignee and the other circumstances referred to in the order of the Tribunal would lead to the conclusion that there was no sale in the course of inter-State sale in terms of section 3 of the Act. On a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on an appreciation of the entire facts and circumstances. It also dealt with the argument on behalf of the appellant that the case was covered by illustration 2 in the case of Balabhagas Hulaschand v. State of Orissa [1976] 37 STC 207 (SC) and held that on the peculiar facts of the case, in the light of the documents available, it was a case of sale in the course of inter-State trade, the movement of the goods being preceded by orders for purchase and triggered by them. Thus the Tribunal affirm .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

contended that it had erred in not understanding the legal effect of the materials available. He pointed out that the various documents showing the appellant as the consignor and the consignee, were significant and their significance had not been properly appreciated, or their impact properly considered on deciding the question. He also relied upon the decisions of the High Court of Rallis India Limited v. State of Tamil Nadu [1994] 92 STC 325 (Mad) and Ahura Welding Electrode Mfgrs. Ltd. v. Sta .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d on by the appellant, it is indicated that the circumstances have to be appreciated and that to become an inter-State sale, it was not even necessary that the goods be ascertainable before dispatch. In the case on hand, it is seen that specific offers were made by the branch office of the appellant to IISCO and TISCO for sale of their products on the conditions mentioned therein. The conditions were accepted by IISCO and TISCO and they placed orders on the appellant for supply of specified quan .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assessing the nature of the sale involved herein. On an appreciation of the facts indicated by the orders under appeal, in the light of the facts high- lighted on behalf of the appellant showing the appellant as the consignor and the consignee, it is not possible to say that the authorities below have come to a conclusion that is unreasonable or one that could not have been come to by an authority instructed in law. It is true that even though the orders placed by IISCO and TISCO indicated the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er thing to take note of all the circumstances obtaining, in the lights of the facts available and come to a conclusion whether the movement of goods was triggered by the orders of purchase placed on the branch office. Here, the stand adopted by the appellant that it was not aware of the fact that offers were made and accepted and orders of purchase were placed and the fact that the relevant information was not disclosed by the appellant, but was gathered from the purchases, IISCO and TISCO also .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version