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

2011 (12) TMI 649 - CENTRAL SALES TAX APPELLATE AUTHORITY - [2012] 47 VST 1 (CSTAA) - 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 .....

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nt that this authority had the right not only to consider any question of law that may 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 restric .....

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kata. Sales of the products were being effected from various stock points in the country. 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. I .....

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conditions imposed was that in case of breach of any of the conditions, the sum of ₹ 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 bra .....

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e position that the movement of the goods was not occasioned by the orders of purchase 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 a .....

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o IISCO and TISCO and imposed tax thereon at the rates prescribed. The appellant took 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 accept .....

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ing officer. The Sales Tax Appellate Tribunal noticed the various facts which according 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 p .....

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ure clause to the effect that one per cent of the value of the entire quantity mentioned 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 .....

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rough which metal is transferred also showed the consignor and the consignee, as the appellant, 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 ther .....

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ecided cases to conclude that the question had to be decided on the facts of the case, 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 .....

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not disputed that the Tribunal had posed the proper question for decision but it was 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. Stat .....

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en case. Even in Balabhagas Hulaschand v. State of Orissa [1976] 37 STC 207 (SC) relied 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 b .....

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dered as a desperate attempt to get over the effect of that part of the transaction in 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 i .....

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and appreciate its impact on the transaction. On the other hand, it would be the proper 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 .....

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