TMI Blog2020 (10) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... g to establish that the sales in question are intra-State Sales leviable with local sales tax under TNGST Act and when the same transaction having already been taxed under the previous CST Act in the hands of M/s.Baynee Trading Company at 4% against 'C' Forms issued by the purchaser M/s.Gayathri Trading Corporation of Pondicherry cannot be taxed again as local sales in the hands of the Appellant M/s.National Engineering Industries. The reason given by the learned Tribunal in its impugned order cannot be appreciated, that merely because the two parties viz., the Assessee M/s.National Engineering and M/s.Baynee Industries were located within the State of Tamil Nadu at Chennai, no inter-State sales could have taken place - this view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ituated in this State is local sales with local C form it is neither an E1 sales nor an interstates sales. In view of the Hon ble Supreme Court in the case of A C Projects And Technologies Ltd. Vs. State of Karnataka reported in 019 VST 0239 has held that to qualify of E1 transaction exemption the first transaction should be an interstate transactions. i.e there shall be movement of goods from one state to another in respect of the first transactions. In the instant case both the dealers reside in the State of Tamil Nadu and transactions is between the two Tamil Nadu dealers, such transactions effected before crossing the State boundary. Hence the Central Sales Tax Act would apply only when there is two States involved or continue to inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pertaining to the same State is incorrect. These transactions are nothing but local sales assessable under the TNGST Act only. In view of the above, we do not find any infirmity in the order of the first Appellate Authority viz, the Appellate Deputy Commissioner (CT)-III and upheld the impugned appeal order dated 01.03.2012 in AP No.21/10. The TA filed by the appellant dealer herein is therefore dismissed. 3. The learned counsel for the Appellant/Assessee Mrs.C.Rekha Kumari submitted that the Tribunal as well as the Assessing Authority had fallen into error in misconstruing that the sale was between the parties viz, National Engineering Limited and M/s.Baynee Trading Company, which were located in Chennai and therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts impugned order that merely because two Dealers were situated within the State of Tamil Nadu and therefore, inter-State sales could not have taken place is erroneous and therefore, the present Appeal deserves to be allowed. She relied upon the decision of a Division Bench in the case of Vinay Cotton Waste Company v. The State of Tamil Nadu (1986) 63 STC₹ 391 (Mad) in which, a coordinate Bench of this court held as under:- We are not inclined to agree with the learned counsel for the assessee that an inter-State sale can take place only between two dealers in two different States. It is possible that even as between dealers in the same State, an inter-State sale can take place. Even if the seller and the buyer are in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... viable with local sales tax under TNGST Act and when the same transaction having already been taxed under the previous CST Act in the hands of M/s.Baynee Trading Company at 4% against 'C' Forms issued by the purchaser M/s.Gayathri Trading Corporation of Pondicherry cannot be taxed again as local sales in the hands of the Appellant M/s.National Engineering Industries. 6. We cannot appreciate the reason given by the learned Tribunal in its impugned order that merely because the two parties viz., the Assessee M/s.National Engineering and M/s.Baynee Industries were located within the State of Tamil Nadu at Chennai, no inter-State sales could have taken place. This view taken by the learned Tribunal is not only contrary to the decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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