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of <h1>Court classifies sales transaction as interstate, setting aside Tribunal order. Movement and sale link crucial.</h1> <h3>Aspick Engineering (P) Ltd. Versus The State of Tamil Nadu</h3> Aspick Engineering (P) Ltd. Versus The State of Tamil Nadu - TMI, [2013] 62 VST 216 (Mad), 2016 (332) E.L.T. 505 (Mad.) Issues:1. Interpretation of sales transaction as inter-state or local.2. Justification of tax liability on specific turnover.Issue 1 - Interpretation of sales transaction as inter-state or local:The case involved an appeal against the Tribunal's order regarding the assessment year 1989-90, focusing on whether the sale represented inter-state or local sales. The Assessing Officer considered it a local sale as the delivery was within the state, leading to assessment under the Tamil Nadu General Sales Tax Act. The Appellate Authority and Sales Tax Appellate Tribunal upheld this view based on factors like ex-godown price, buyer's delivery, and insurance. The petitioner argued that despite no written agreement, the sale was inter-state due to the intimate link between movement and sale, citing relevant case laws. The Government Advocate supported the local sale view, emphasizing buyer's actions post-delivery.Issue 2 - Justification of tax liability on specific turnover:The petitioner contested the tax liability on a specific turnover, highlighting the lack of reasons from the Assessing Authority and non-consideration by the Appellate Assistant Commissioner. The petitioner's counsel argued that contractual matters like insurance and movement by the buyer should not solely determine the sale's nature. The Government Advocate relied on case law to support the view that buyer's actions post-delivery indicated a local sale. After considering the arguments and legal precedents, the Court held that the movement and sale were intricately linked, making it an inter-state sale. The emphasis on buyer's actions post-delivery was deemed misplaced, leading to the Tribunal's order being set aside.This detailed analysis of the judgment showcases the legal intricacies involved in interpreting sales transactions as inter-state or local and justifying tax liabilities based on specific turnovers. The Court's thorough examination of the facts, legal arguments, and relevant case laws resulted in a decision favoring the petitioner's stance on the nature of the sale, ultimately setting aside the Tribunal's order.
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