TaxTMI 
TaxTMI 
TaxTMI 
1987 (8) TMI 397
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....cer found that the assessee carried on business in coal. The Sales Tax Officer noted that the bilties (R. Rs.) concerning this kind of sale of coal had been prepared in the name of the dealer. The dealer endorsed these bilties (R. Rs.) and gave these to the diverse parties in U.P. The parties in U.P., on receiving these bilties, got the goods released. The dealer admitted that the bilties (R. Rs.) having been endorsed to the parties in U.P. were given to them at the time, while the goods were in the state of movement between Bihar and U.P. The bills connected with bilties (R. Rs.) of this kind had also been prepared by the dealer and the money had been realised by the dealer from the purchasing parties. The Sales Tax Officer was of the view that the sale of coal effected in that manner came under inter-State sale and as such was liable under section 3(b) of the Central Sales Tax Act, 1956, by transfer of document when the goods were in movement. It was the case of the dealer that the goods had been sold to an unregistered dealer and he too was not a registered dealer for the year 1965-66. Therefore, there was no question of imposition of any sales tax. The Sales Tax Officer did no....
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....les for determining when a sale or purchase of goods takes place in the course of inter-State trade or commerce or outside a State or in the course of import or export. Section 3 stipulates that a sale or purchase of goods shall be deemed to take place in the course of inter- State trade or commerce if the sale or purchase- (a) occasions the movement of goods from one State to another; or (b) is effected by a transfer of documents of title to the goods during their movement from one State to another. There are two explanations to that section and explanation I provides that where goods are delivered to a carrier or other bailee for transmission, the movement of the goods shall, for the purposes of clause (b), be deemed to commence at the time of such delivery and terminate at the time when delivery is taken from such carrier or bailee. Explanation 2 enjoins that if the movement of goods commences and terminates in the same State it shall not be deemed to be a movement of goods from one State to another by reason merely of the fact that in the course of such movement the goods pass through the territory of any other State. Section 6 deals with the liability to tax on inter-State ....
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....ause (a) or clause (b) of section 3, shall be levied by the Government of India and the tax so levied shall be collected by that Government in accordance with the provisions of sub-section (2), in the State from which the movement of the goods commenced. (2) Subject to the other provisions of this Act and the rules made thereunder, the authorities for the time being empowered to assess, reassess, collect and enforce payment of any tax under general sales tax law of the appropriate State shall, on behalf of the Government of India, assess, reassess, collect and enforce payment of tax, including any penalty, payable by a dealer under this Act, as if the tax or penalty payable by such a dealer under this Act is a tax or penalty payable under the general sales tax law of the State; and for this purpose they may exercise all or any of the powers they have under the general sales tax law of the State; and the provisions of such law, including provisions relating to returns, provisional assessment, advance payment of tax, registration of the transferee of any business, imposition of the tax liability of a person carrying on business on the transferee of, or successor to, such business, t....
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....has one or more places of business situate in the same State, that State or in relation to a dealer who has places of business situate in different States, every such State with respect to the place or places of business situate within its territory. It is not the position in the instant case. It was contended on behalf of the Revenue that in the State of Uttar Pradesh, the concerned Sales Tax Officer was fully competent to make the assessment. The High Court was of the view that this argument proceeded on an omission to consider the opening words of section 2 which is the definition clause, and which makes the definitions given thereunder subject to the context. Sub-section (1) of section 9 confers jurisdiction to make the levy and collection of the tax on the State where the movement of the goods commences, and so the determinative test for discovering the jurisdiction of a particular State, in an inter-State sale, is the place where the movement of the goods commences. The words "appropriate Government" given in sub-section (2) of that section must necessarily refer to the State which by section 9(1) has been conferred jurisdiction to levy and collect the tax. The provisions mu....