TMI Blog2021 (3) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... the same represented the consideration received for the hank yarn manufactured and transferred to other mills' accounts - the factual details are rightly re-appreciated by the Tribunal and that there are no reasons to interfere with the same - Petition dismissed. Assessment made on the disputed turnover of ₹ 7,86,81,405/- - cotton purchases effected by the petitioner from the Maharashtra Federation in the Maharashtra State - HELD THAT:- The said issue is covered in favour of the petitioner in the light of the Larger Bench decision of the Special Tribunal in the case of JAMBAI KNM. TEXTILES (P.) LIMITED AND OTHERS VERSUS STATE OF TAMIL NADU AND OTHERS [ 1999 (11) TMI 840 - TAMIL NADU TAXATION SPECIAL TRIBUNAL] where it was h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... represented the cotton purchases effected by the petitioner from the Maharashtra Federation in the Maharashtra State. 4. In respect of the first issue pertaining to hank yarn obligation, we find that the Tribunal was right in holding that the hank yarn obligation represented the consideration received for the hank yarn manufactured and transferred to other mills' accounts to discharge the statutory obligation imposed for other mills by the Statutory Authority and in that process, they received the hank yarn obligation. Hence, the Tribunal was right in holding that the same represented the consideration received for the hank yarn manufactured and transferred to other mills' accounts. We find that the factual details are rightly re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t purchase in the State and accordingly allowed all the five appeals. 6.For better appreciation, the findings of the Tribunal in paras 6 to 8 of the impugned order are extracted below: 6.We heard the arguments put forth by the learned Authorised Representative and the learned Additional State Representative and carefully examined the records produced at the time of hearing along with the assessment records. The only point for consideration is: Whether the disputed transactions in all the five years is an interstate purchase at the hands of the appellants or a local purchase liable to be taxed under the TNGST Act, 1959 i.e., whether the transactions fall under the definition of section 3(a) of the CST Act, 1956 or 2(n) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall, for the purposes of clause (b), be deemed to commence at the time of such delivery and terminate at the time when delivery is taken from such carrier or bailee. Explanation: 2 Where the movement of goods commences and terminates in the same State, it shall not be deemed to be a movement of goods from one State to another by reason merely of the fact that in the course of such movement the goods pass through the territory of any other State . We examined whether the appellants' transactions fall under the above mentioned Section 3(a) of the CST Act 1956. If it falls under the above section, the local Act and the Section 4 of the CST Act, 1956 need not be applied. Section 3(a) of the CST Act, 1956 states that if the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hence, the disputed transactions have to be considered as local sales. We have given careful consideration with reference to the facts of these cases. It is an admitted fact that the Federation has delivered the goods only after receipt of the payment in Tamil Nadu from the Godown. Because of this factor, the disputed transaction cannot be considered as local sale as per the decision of the Hon'ble Supreme Court in the case of Oil India Ltd. v. Superintendent of Taxes reported in 35 STC 445 wherein it has been held that a sale which occasions movement of goods from one state to another is a sale in the course of interstate trade, no matter in which State the property in the goods passes. It is not necessary that the sale must prece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owers Marketing Federation Ltd., Bombay. The above records clearly show that there is an interstate movement of cotton, which has been termed as local purchase by the Assessing Officer. The transactions are similar to the case decided by the TNTST, Chennai, in the case reported in TC(A) 2803 to 2805 of 1997, TC (R) no.112 and 114 of 1998 etc. Dated 1.11.1999. 8. We have also verified the fact with reference to the point mentioned in page 10 of TNTST, Chennai's order whether the disputed transactions relate to the movement of goods by the sellers without referring to any buyers and they have searched for buyers after storing the goods in the godown at Tamil Nadu. The verification of the records revealed that the case is not so. In a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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