TMI Blog2019 (8) TMI 1097X X X X Extracts X X X X X X X X Extracts X X X X ..... casioned by a preexisting contract for sale of goods. Similarly, mere mention of the assessee's name as the consignor of the goods was largely irrelevant. In face of such finding which have neither been shown to be erroneous nor perverse and in absence of the contract document itself being produced and further in absence of it being established before the authorities that the entire quantities of goods had been imported pursuant to pre-existing contract for sale of those goods, inside the State of U.P., merely because the assessee had executed a single contract inside the State, could not lead to the conclusion that all goods had been imported pursuant to that pre-existing contract for sale especially when undisputedly the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the applicant-assessee against the order of the Commercial Tax Tribunal, Meerut dated 29.08.2008 in Second Appeal No.164 of 2006 for the A.Y. 1997-98 under the U.P. Trade Tax Act, 1948 (hereinafter referred to as the Act). By that order, the Tribunal has rejected the appeal filed by the assessee for the A.Y. 1997-98 as also for the A.Y.s. 1996- 97, 1998-99 and 1999-00. During A.Y. 1997-98, the assessee disclosed nil taxable turnover. However, it was assessed to tax ₹ 41,00,000/- with respect to supplies of equipments made to M/s Escotel Mobile Communications Limited used in mobile communication from its factories at Delhi and Karnataka. 2. Heard Sri Shashi Mathews, alongwith Sri Tanmay Sadh, Advocate, holdin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance has been placed on a decision of the Supreme Court in Indian Oil Corporation Ltd. Another Vs. Union of India Others 1980 (Supp) Supreme Court Cases 426 , to submit merely because storage facility may have been set up by the seller inside the State of U.P., it would not bifurcate a single transaction into two, being, one/first of inter-state transfer of goods by the seller (on its own account) and another/second of intra-state sale by such seller, thereafter. 6. In that regard, it has been stated that the entire supply of goods had been made by the assessee to M/s Escotel Mobile Communications Limited under the contract dated 18.05.1996. No other contract had been awarded to the assessee during that year and it h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the assessee to M/s Escotel Mobile Communications Limited treating the same to be intra-state sale, cannot be faulted. 9. Having heard learned counsel for the parties and having perused the record, it does appear, that part of the reasoning offered by the Tribunal is erroneous, insofar as the Tribunal has observed that the transaction had to be bifurcated into two parts since the assessee was having a godown inside the State of U.P. and since the assessee's name was mentioned as the consigner in the excise documents. Clearly, existence of the godown inside the State of U.P. was not decisive to determine whether the movement of the goods had been occasioned by a preexisting contract for sale of goods. Similarly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reference has been made to certain goods having been replaced after being first supplied by the assessee. It has been further recorded that goods were being received at the Mohkampur godown of the assessee, District-Meerut and therefrom they were distributed amongst others to outside the State for execution of other contracts. 11. In face of such finding which have neither been shown to be erroneous nor perverse and in absence of the contract document itself being produced and further in absence of it being established before the authorities that the entire quantities of goods had been imported pursuant to pre-existing contract for sale of those goods, inside the State of U.P., merely because the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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