TMI Blog2018 (12) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... e incidence of Central Sales Tax or even sale of goods, occurs where the goods are appropriated to the contract. In this case, the place where the appropriation took place, is undoubtedly Mumbai. Appeal dismissed. - ST.APPL.1/2018 & CM APPL. Nos.48717-48720/2018 - - - Dated:- 26-11-2018 - MR. S. RAVINDRA BHAT AND MR. PRATEEK JALAN JJ. Appellant Through: Mr. Satyakam, ASC (GNCTD) Respondent Through: None. MR.JUSTICE S.RAVINDRA BHAT (OPEN COURT) 1. The question of law urged on behalf of the appellant/Government of NCT of Delhi concerns the correctness of the finding of the Appellate Tribunal, Value Added Tax, Delhi [hereafter referred to as VAT Tribunal ] that the supply of the goods from Mumbai to Delhi to execute t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umbai, upon acceptance of the offer/placing orders. 3. Learned counsel sought to urge that the Tribunal made an error in holding that the Delhi Sales Tax Act, 1975 did not apply. He relied upon the decision in Kone Elevators India Pvt. Ltd. vs. State of Tamil Nadu and Ors. (2014) 7 SCC 1 and also stated that the sale of the right to use the elevators was concluded in Delhi, which was also the place of performance of the contract i.e. installation and commissioning. He also relied upon the judgment of the Supreme Court in Larsen and Tourbo Limited Vs. State of Karnatka (2014) 1 SCC 708. The relevant findings of the VAT Tribunal, allowing the assessee s appeal are as follows: 25. The above decisions make it amply clear that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be subject to adjustment up or down in accordance with the following formula ..... page 6 last para - PAYMENT TERMS:- under this clause claim for manufactured materials shall be paid along with our material invoice and claim for installation labour shall be paid along with our final invoice. Page 7 clause 6 CONDITIONS OF CONTRACT 6. Payment shall be made pro rata per elevator as follows: 30% with your acceptance of this proposal, 60% on receipt of advice from us that materials are ready for dispatch, and the remaining 10% on completion of our installation work, with the further provision. We reserve the right to dispose of the equipment or to discontinue our work or to withhold the release of completed elevator(s) at any ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Page 8 clause 17 - The equipment offered by us has been described in our attached specifications and complete equipment will be supplied and installed as per standard Otis Design, manufacture and practice. In case of any variation between your specifications, terms and conditions and our quotation/ specifications / correspondence, the latter shall prevail. Page 8 clause 21 - The contract is deemed to be concluded at NEW DELHI and only Courts in this place shall have jurisdiction in the event of any dispute whatsoever. (iv) There is nothing on record that the lifts are manufactured at Bombay and then send to Delhi in semi-knock down state and fixed here as such it is a interstate sale. The sample agreement placed on file does ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TRAVEL GR 1st FLOOR to 3rd FLOOR ABOUT 9.9 MTRS STOPS OPENINGS 4 STOPS /4 OPENINGS (ALL OPENINGS ON SAME SIDE) POWER SUPPLY 415 VOLTS 3 PHASE 50 CYCLE A.C. LIGHT SUPPL 230 VOLTS SINGLE PHASE 50 CCLE A.C. CONTROL OICS-1 OPERATION SINGLE AUTOMATIC PUSH BUTTON MACHINE GEARED TRACTION VTR MACHINE OF OTIS DESIGN PLACED DIRECTLY ABOVE THE HOISTWA IN THE MACHINE ROOM CAR SIZE ABOUT 1170 MM WIDE X 940 MM DEEP INSIDE DIMENSIONS HOISTWAT REQUIYRED ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat a company with head office in one State and branches in various other States is one legal entity. These judgments also lay down that where orders for supply of goods are placed with a branch and goods are supplied in pursuance of that order by the factory in the other State, the sale will be Inter State sale. 30. In our considered view the, the facts as noticed form the aforesaid specifications and the invoices issued in pursuance to the contract are sufficient to hold. that the goods that moved from outside Delhi for execution of the works contract are interstate sale and as such cannot be taxed under the Delhi Sales Tax on Works Contract Act, 1999. 4. This Court is of the opinion that the appreciation of the law by the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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