Inter-State sale dispute remitted for fresh examination after the assessee was allowed to produce additional evidence.

The disputed goods were claimed to have been received from an outside-State principal on commission basis and returned after rejection by the ultimate purchaser, so the question was whether the transaction could be treated as an inter-State sale. The existing record was found insufficient to conclusively prove the return of goods, but the prior conclusion was not accepted because the evidentiary position required further examination. The assessee was allowed to place additional materials, and the matter was remitted to the assessing officer for fresh consideration with the issue left open for re-determination.

---

---

Issues: Whether the disputed goods were liable to be treated as an inter-State sale, or whether the matter required re-examination on the basis that the goods had been returned to the outside-State principal.

Analysis: The claim was that the goods had been received from an outside-State principal for sale on commission basis and were later sent back after rejection by the ultimate purchaser. The existing record was found insufficient to conclusively establish the return of goods, but the Court found that the conclusion drawn below was not acceptable because the evidentiary matter required further examination. The Court directed that the assessee be permitted to place additional materials to support the stand that there had been no inter-State sale.

Conclusion: The matter was remitted to the assessing officer for fresh consideration after permitting the assessee to adduce further materials, and the issue was left open for re-determination.

---