2008 (12) TMI 689 - HC - VAT and Sales Tax

Court upholds Tribunal's decision on inter-State sale taxability, no liability in U.P.

The court upheld the Trade Tax Tribunal's decision in a case concerning the taxability of a transaction involving the supply of equipment to a company in ... - Issues involved: The issue in this case involves determining whether a transaction of supply of equipment, contrivances, and machinery made by the dealer to a company was a provincial sale or an inter-State sale, and whether it was liable to be taxed under the U.P. Trade Tax Act.Summary:The State filed a revision under section 11(1) of the U.P. Trade Tax Act, 1948, for the assessment year 1986-87, challenging the Trade Tax Tribunal's decision to delete the tax imposed on the assessee. The assessee, a civil contractor from Pune, entered into a contract with M/s. IFFCO Ltd. to supply equipment to its unit in U.P. Despite the State's argument that the title in goods passed to the buyer in U.P., the Tribunal found that the transaction was an inter-State sale between parties in Pune and U.P. The Tribunal considered the Central sales tax already paid by the assessee on the transactions in U.P. and concluded that no tax was due in U.P. The Tribunal's decision was supported by previous court rulings on similar matters. The court upheld the Tribunal's decision, stating that the contract was an inter-State trade, and no tax was payable in U.P. The revision was dismissed for lack of merit.