TMI Blog2023 (1) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... t to interstate sales then in all subsequent years ipso facto, without anything more, all the transactions for those years will also be termed only as branch transfers and not interstate sales. While the Assessee has discharged its initial burden of showing that the transaction was only a branch transfer, the Department has been unable to discharge its burden of showing that in fact the transaction was not merely a branch transfer but was a movement of goods by way of interstate sale occasioned by a concluded contract - the Court is not persuaded that the matter pertaining to 1988-89 should again be sent to the Tribunal for verification of each transaction to determine whether it is an interstate sale as contended by the Department. The Court notes that nearly 35 years have already elapsed since the year 1988-89 and these proceedings cannot interminably carry on. The impugned order of the Tribunal and the corresponding orders of the First Appellate Authority and the AO are hereby set aside - issue answered in favour of the Assessee and against the Department. - TREV No. 147 of 2001 - - - Dated:- 18-1-2023 - DR. S. MURALIDHAR CHIEF JUSTICE AND M.S. RAMAN, JUDGE For t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yards outside the State of Bihar to the dealer the. Vehicles which shall allotted to the dealer by the company at its discretion for resale in accordance with the provisions of the agreement. Clause 11 (b) is reproduced below : The dealer shall mail to the Company on the 15 th of each month, or so so that the Company will be in receipt thereof by the 20th of each month, his firm order for purchases to be effected during the next succeeding month and his estimated requirements of the said vehicles for the two months following the next succeeding month, for the said vehicles. 11. In the communication which has been referred to before sent to the Assistant Commissioner it had been emphasised that although the above clause regarding the firm order was included in the dealership agreement, in fact no firm orders were called for in view of the Control Order. It was maintained that during the relevant period sales were effected from the stockyards alone, the procedure adopted being as follows: The sales office of the appellant in Bombay, after taking into account the production schedule requirements of individual States, the Government directives and other relevant fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntract of sale out of the stocks available with him and put down the vehicle engine and chassis number in the delivery challan. This was done after a delivery order had been, addressed by the sales office at Bombay to the stockyard incharge for delivery of stated number of vehicles of specified model to a particular dealer. Till such appropriation of vehicles through specification of the engine and chassis numbers, it was always open to the company to allot any vehicle to any purchaser or to transfer the vehicles from the stockyard in one State to a stockyard in another State. 4. As far as the present case is concerned, the case of the Assessee is that it undertakes stock transfers to its branches located outside the State of Odisha and that the goods are then offered for sale customers in those respective States. Sales tax is then collected at such place of sale as per law of that State and deposited with the said State. 5. Emphasis was laid by learned counsel for the Petitioner on what he termed as standard goods and non-standard goods . He submitted that in the present case for the year 1988-89 what was transferred to the branches were all standard goods in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment, after which SAIL has taken it in appeal to the CSTAA, the present matter should also be sent back to the Tribunal for a fresh determination whether the transactions in question for 1988-89 were interstate sales as contended by the Department or merely inter branch transfers as contended by the Assessee. 9. The above submissions have been considered. There can be no manner of doubt that an AO is required to examine each transaction forming the subject matter of the assessment proceedings to determine whether it amounts to a branch transfer as contended by the Assessee or an interstate sale as contended by the Department. Therefore, the decision in any particular year, even involving the same Assessee and the same scheme, need not necessarily form a precedent for a subsequent year since the transaction in each subsequent year will have to in any event be examined on a case by case basis. Therefore, there need not be any apprehension entertained by the Department that if the Court for the present year i.e. 1988-89 decides that the transactions in question do not amount to interstate sales then in all subsequent years ipso facto, without anything more, all the transactions for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the matter pertaining to 1988-89 should again be sent to the Tribunal for verification of each transaction to determine whether it is an interstate sale as contended by the Department. The Court notes that nearly 35 years have already elapsed since the year 1988-89 and these proceedings cannot interminably carry on. 12. For the aforementioned reasons, the questions framed are answered in favour of the Assessee and against the Department. The impugned order of the Tribunal and the corresponding orders of the First Appellate Authority and the AO are hereby set aside. In other words, it is held that for the year 1988-89 the transactions in question were branch transfers not amounting to interstate sales. It is clarified that this finding of the Court for the year 1988-89 will not preclude the Department from demonstrating for any of the subsequent years that the transactions forming subject matter of the assessment proceedings in any of those years do not amount to branch transfers but were in fact inter-state sales. 13. The revision petition is accordingly disposed of. An urgent certified copy of this order be issued as per rules. - - TaxTMI - TMITax - CST, VAT & Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X
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