TMI Blog2023 (2) TMI 545X X X X Extracts X X X X X X X X Extracts X X X X ..... any evasion of tax. Nothing had been brought on record to prove that the goods were intended to be used or sold in the State of Punjab. Rather the material placed on record clearly indicated that 117 pieces of cast crank cases had been brought into the State of Punjab for job work while on transit and the remaining 10 pieces were also for transit purposes. The absence of any written agreement between the appellant and M/s Sahil for receiving goods at Mohali did not give rise to any inference that the goods were intended to be sold at Mohali. The mere possibility of a local sale would not clothe the officials of the respondents to take such an action when there was no material on record to indicate that an attempt was made by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s Sahil ) for the purposes of carrying out its manufacturing activities. It had placed a purchase order No.5500003363 dated 14.08.2010 for 2000 EA (pieces) of TC-60011032 Crank Case Casting and 2500 EA (pieces) of TC-40011007 Crank Case 3 Bore to M/s. Ghatge Patil Industries Ltd., Uchagaon, Kolhapur, Maharashtra (for short 'vendor'). The said order was valid up to 31.03.2011 and as per the mutual agreement, the material was to be dispatched in small consignments. It was also stipulated in the purchase order that the casting without fettling was to be delivered to M/s Sahil Engg. Works,, Village Silba Majre, Kurali for fettling purposes and the same was to be invoiced to the appellant. The vendor of the appellant while acting upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pieces. It also raised a bill No.98 dated 16.09.2010 for a sum of Rs.35.25/- as loading and unloading charges qua the remaining 10 pieces of cast Iron. The appellant due to inadvertence issued job work challan bearing No.3935 dated 12.09.2010 for all 127 pieces instead of 117 pieces. After completion of fettling work, M/s Sahil dispatched 117 pieces of rough cast iron over which job work was done and 10 other pieces through truck No.HR-46-C-9922 driven by Inderjit driver vide GR No.495 dated 16.09.2010. When the driver was declaring goods at ICC, Ghanauli, Ropar, the checking officers detained the same for verification under Section 51 (6) of Act, 2005 on the ground that there was no reference or challan in favour of M/s Sahil and the trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the grounds that invoices for total 127 pieces of rough rough iron crank cases were issued by the vendor and Central Sale Tax had already been paid by the appellant at the time of purchase. The bills issued by M/s Sahil showed that fettling was done on 117 pieces of rough iron crank cases. There was no discrepancy with regard to the goods purchased and goods to be delivered to the appellant. In the purchase order, there was a specific clause that casting without fettling was to be invoiced in the name of the appellant but was to be delivered to M/s Sahil for fettling purposes. As such, the impugned order passed was liable to be set aside. 6. The learned State counsel, on the other hand, submitted that the order passed by the Tax Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to have been made by the driver but since the transaction between the vendor and the appellant was clearly reflected from the invoices and since CST had been duly paid, therefore, there could not be stated to be any evasion of tax. Nothing had been brought on record to prove that the goods were intended to be used or sold in the State of Punjab. Rather the material placed on record clearly indicated that 117 pieces of cast crank cases had been brought into the State of Punjab for job work while on transit and the remaining 10 pieces were also for transit purposes. The absence of any written agreement between the appellant and M/s Sahil for receiving goods at Mohali did not give rise to any inference that the goods were intended to be sold a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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