TaxTMI 
TaxTMI 
1973 (2) TMI 124
X X X X Extracts X X X X
X X X X Extracts X X X X
....ly held as inter-State sales within the meaning of section 3(b) of the Central Sales Tax Act?" The reference was initially made in the form of an application and thereafter another application under section 151 of the Code of Civil Procedure was moved by the assessee praying that a proper statement of the case should be drawn up. This was so ordered by an order of a Bench of this Court dated 7th September, 1971, passed in Civil Miscellaneous No. 1064 of 1971. In compliance with this direction, a statement of the case has been submitted by the Lt. Governor of Delhi. According to the facts stated in the statement of the case, the assessee carries on business as manufacturer and seller of tobacco and bidis with its head office at Delhi a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o the Assistant Commissioner of Sales Tax unsuccessfully. A further revision to the Commissioner of Sales Tax was also unsuccessful. Thereafter, the assessee filed a further petition to the then Chief Commissioner, Delhi, who dismissed the petition and confirmed the orders. Copies of the orders passed by these various authorities have been annexed to the statement of the case. The statement of the case shows that in furtherance of sales effected by the Rewari branch of the assessee, goods were sent from Delhi to various purchasers in the State of Punjab and on these facts there would be very little difficulty in holding that the sales occasioned movement of goods from one State to another within the meaning of section 3(a) of the Central....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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........" The first explanation to the section reproduced above shows that the goods are deemed to be in the course of movement during the period they are with the carrier, from the point of time at which they are delivered to the carrier to the point of time at which delivery is taken. In other words, if the goods are transferred by endorsement of documents during the period the goods are with the railways, the sale will be deemed to be an interState sale. Now, in the present case, on the facts which have been adm....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sales were effected by the branch of the assessee at Rewari and, therefore, the appropriate State for the purpose of collecting the sales tax was the Sales Tax Officer at Rewari and not the Sales Tax Officer at Delhi. Although, it is difficult to bring this contention within the scope of the question actually referred, we have heard the counsel for both sides on this question and have been referred to a number of cases. The Supreme Court had occasion to deal with this matter in Tata Iron and Steel Co. Ltd., Bombay v. S.R. Sarkar and Others[1960] 11 S.T.C. 655 (S.C.). It is unnecessary to reproduce the various questions dealt with in that judgment because there has been a retrospective amendment of section 9 of the Central Sales Tax Act, 195....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rnment in accordance with the provisions of sub-section(2), in the State from which the movement of the goods commenced." This provision plainly shows that the collection of sales tax has to be effected by the Government of India in the State from which the movement of the goods commenced. As we have already concluded that this is an interState sale by reason of the fact that the transfer of documents of title took place during the movement of the goods, it also follows that we have to determine the State in which the tax is to be collected by determining the State from which the movement of the goods commenced. That is plainly Delhi. Hence, there is no doubt that under the present law, the inter-State sales in question have to be taxed ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es have been effected by the Rewari branch or by the head office at Delhi, by the Sales Tax Officer at Delhi. The counsel for the Commissioner of Sales Tax has also referred to the decisions in Indian Wood Products Co. Ltd. v. Sales Tax Officer, Ward No. 13, New Delhi, and Others[1968] 21 S.T.C. 437. and Sales Tax Officer, Ward No. 13, New Delhi, and Others v. Indian Wood Products Co. Ltd.[1972] 30 S.T.C. 132., in support of his contention and has also based his arguments on the unamended section 9. It is unnecessary to deal with the unamended section 9, because of the retrospective amendment of section 9, which was made in 1969. The judgment of this court in Sales Tax Officer, Ward No. 13, New Delhi, and Others v. Indian Wood ....