TaxTMI 
TaxTMI 
1963 (8) TMI 36
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....State purchase and that as such it was exempt from the levy of sales tax under the State law. The department as well as the Tribunal held that the purchase covered by the turnover was intra-State and was within the scope of the Act. The petitioners also claimed that the turnover relating to two items of sale of yarn during the year 1956-57 should not be taxed as the yarn was sold to dealers in places outside the Madras State and that the sales were inter-State sales not covered by the Act. Both the department and the Tribunal negatived relief to the petitioners in regard to these sales as, in their opinion, they were not inter-State in character. In these revision petitions the petitioners contend that both these sets of transactions should....
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.... and carried to Koilpatti through lorries and that therefore at the point of time when the goods were taken delivery of by the petitioners the purchases could not be attributed with the character of inter-State purchases. We are unable to agree with this view of the Tribunal and it seems to us that it is essentially unsound. The Central Sales Tax Act, 1956, defines an inter-State sale as follows: "Section 3.-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. Explanation 1.-Where goo....
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.... should be delivered only at Koilpatti. That there should be a continuity of passage or non-variance in the means of transport in an inter-State sale is a fanciful notion unsupported by any principle of law or authority. The characteristic of an inter-State sale or purchase is the movement of goods from one State to another under a contract between the seller and the buyer. The method of delivery adopted, the route through which the goods are despatched, and the stages involved in the course of journey of the goods are extraneous circumstances in the determination of an inter-State sale or purchase. We have examined a few of the contracts relating to this disputed turnover to ascertain the terms and conditions under which the Bombay deale....
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....w. On the question whether the disputed turnover relating to yarn sales represented inter-State sales or intra-State sales, we find ourselves completely in agreement with the view taken by the Tribunal. It is true that the State Representative filed a report before the Tribunal expressing the view that these sales would be inter-State. But the Tribunal, however, went into the question in great detail and reached the conclusion that there was no acceptable evidence to prove their inter-State character. The only evidence produced by the petitioners was a register called bale order register. The Tribunal verified some of the entries in this register. We have ourselves looked into a few of the entries in the register and we have no hesitation ....