Interstate sale or Stock transfer - Merely because quantities of...

Interstate sale or Stock transfer - Merely because quantities of camphor may have been transferred in entirety or soon after receipt at the branch also did not create any presumption of prior contract of sale. Further, the fact that tax may not have been paid by the assessee at Delhi would remain a matter outside the jurisdictional sphere of the taxing authority in the State of U.P. Non payment of tax in one State does not create liability to pay tax in another State. In any case, in the context of inter-State sale, existence of prior contract of sale was mandatory as may have occasioned the movement of goods from UP to Delhi was necessary to be established. - HC