Intra-dealer goods movement without sale did not attract check-post contravention under Tamil Nadu sales tax law.

Movement of goods from a manufacturer's factory to its own godown, without any sale or purchase in transit, was found not to attract section 44 of the Tamil Nadu General Sales Tax Act, 1959. The Court held that the transport was not in the course of a contract of sale and that the goods were not intended for sale when they crossed the check post, so the statutory ingredients for treating the movement as a contravention were not established. Writ relief was nevertheless declined at that stage, and the petitioner was directed to pursue the statutory revision remedy under section 32.

---

---

Issues: Whether the movement of goods from the manufacturer's factory to his own godown, without any sale or purchase in transit, attracted section 44 of the Tamil Nadu General Sales Tax Act, 1959 and justified the notice and compounding demand.

Analysis: The goods were being transported by a registered dealer from the place of manufacture to his own godown. On verification of the documents, the Court found that the transport was not pursuant to any contract of sale and that the goods were not intended for sale at the time they crossed the check post. Section 44, read with the requirement to carry a bill of sale or delivery note, was treated as applying to a movement of goods in the course of sale or purchase. On those facts, the Court held that the statutory ingredients for treating the movement as a contravention were not established. At the same time, the Court declined to issue the writ at that stage and directed the petitioner to pursue the statutory revision under section 32 of the Act.

Conclusion: Section 44 was not attracted on the facts found, but the writ relief was declined and the petitioner was relegated to the statutory revision remedy.

---