TMI Blog2023 (8) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... AT:- A Division Bench of the Hon ble Supreme Court also examined the very same position in HYDERABAD ENGINEERING INDUSTRIES VERSUS STATE OF ANDHRA PRADESH [ 2011 (3) TMI 1427 - SUPREME COURT ] . Therein the appellant, a registered dealer within the State of Andhra Pradesh was engaged in the manufacture and sale of electrical and other consumer items and they entered into an agreement with another company for marketing and sale of their products. The appellant, pursuant to orders of sale issued by the other company, the agent, transported the products to the various depots belonging to themselves from where the agent collected the goods and delivered it to the ultimate purchaser. The assesse-appellant claimed it as a branch transfer. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this judgment. If the refund is not granted within that time then the interest shall run at the rate of 12% from the date of expiry of the 4 month period. Petition allowed. - HONOURABLE THE CHIEF JUSTICE K. VINOD CHANDRAN AND HONOURABLE MR. JUSTICE PARTHA SARTHY Appearance : For the Petitioner/s : Mr. Satyabir Bharti, Advocate Mr. Kishor Singh, Advocate For the Respondent/s : Mr. Anshay Bahadur Mathur, CGC Mr. Vikash Kumar, SC-11 CAV JUDGMENT (PER: HONOURABLE THE CHIEF JUSTICE) The writ petition is filed seeking a direction to the Respondents 2, 3, and 6 for refund of an amount of Rs. 38,22,897. It is the petitioner s contention that the said amounts were illegally deducted and recovered from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... slab is indicated as 6.10 m and 5.48 m clear span with MBG loading 25MT including RCC ballast retainers. Therein also, the contract includes stacking and loading into a railway wagon/ load vehicle at the nearest railway station/siding etc. Pursuant to the contract, the goods were manufactured and transported on the strength of invoices, two of which are produced as Annexure-6 series along with the writ petition. Annexure-7 is the details of various bills and the deductions made thereunder on which a claim of refund is made. 5. Learned counsel Shri Satyabir Bharti relied on Pandit Electrical Private Ltd. v. Union of India; 2011 (2) PLJR 444, State of Orissa and Anr. v. K.B. Saha and Sons Industries (P) Ltd and Ors.; (2007) 9 SCC 97, Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le at the nearest railway station/siding/road under the Chief Engineer/Con/NE. The petitioner does not put/ lay the goods on the proposed construction of the Railways. The agreement is one of pure and simple manufacture and sale of goods; which does not constitute a works contract. We say this quite conscious of the fact that even if there is a works contract, as has been held in Commissioner, Delhi Value Added Tax (supra) there is no question of an inter-state supply pursuant to a sale being taxed within the State in which the works contract is carried out, if the supply of goods originates from another State on the basis of a prior contract and is subjected to accretion in the works. Kone Elevator India Private Limited puts to rest any co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r alone and, therefore, the transaction would not be having an inter- state sale element. 9. A Division Bench of the Hon ble Supreme Court also examined the very same position in Hyderabad Engg. Industries v. State of A.P.; (2011) 4 SCC 705. Therein the appellant, a registered dealer within the State of Andhra Pradesh was engaged in the manufacture and sale of electrical and other consumer items and they entered into an agreement with another company for marketing and sale of their products. The appellant, pursuant to orders of sale issued by the other company, the agent, transported the products to the various depots belonging to themselves from where the agent collected the goods and delivered it to the ultimate purchaser. The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mple of goods manufactured by the petitioner, who has been awarded the contract; which is only for manufacture and sale. The manufactured goods are loaded and stacked in a vehicle or railway wagon, by which it is transported into the site within the State of Bihar for accretion in the works of the Railways; which work or accretion is not the responsibility of the petitioner. The transaction is purely of an inter-state sale of goods and is not a works contract nor a sale of goods exigible to tax within the State of Bihar. The sale of goods as per Annexure-2 and Annexure-5 agreements constitute an inter-state sale not exigible to tax within the State of Bihar. 11. The Railways had made a deduction on the ground that it is a works contract; ..... X X X X Extracts X X X X X X X X Extracts X X X X
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