Stock transfer versus job-work classification under CST must be decided on evidence before tax consequences apply.

The dispute concerned whether the movement of goods was a stock transfer attracting Section 6A of the Central Sales Tax Act, 1956, or a job-work arrangement outside stock transfer treatment. The assessment and revisional orders proceeded on a stock-transfer basis and noted absence of Form F, while the appellate authority accepted the assessee's job-work case. The record was found insufficient to conclusively determine the true nature of the transaction, and the matter had not been properly examined on evidence. The issue was remitted to the assessing authority for fresh adjudication after both sides were given an opportunity to produce evidence.

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Issues: Whether the transaction was a stock transfer attracting Section 6A of the Central Sales Tax Act, 1956, or a job-work arrangement not liable to be treated as stock transfer.

Analysis: The assessment and revisional orders proceeded on the premise that the transaction was a stock transfer and that Form F had not been filed, while the appellate authority accepted the assessee's case of job-work. The record showed that the real controversy had not been properly examined by any of the authorities, and the available material was insufficient to conclude definitively that the transaction was a stock transfer. The appropriate course was to determine the true nature of the transaction on evidence before applying the taxing provision.

Conclusion: The issue was remitted to the assessing authority for fresh adjudication after giving both sides an opportunity to adduce evidence.

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