TaxTMI 
TaxTMI 
1973 (8) TMI 144
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.....66 in the course of inter-State trade and, as such, he was liable to Central sales tax in respect of those sales. The assessee denied his liability to tax under the Central Sales Tax Act and contended that the sales were intra-State sales. His contention was that sales were made to parties of U.P. and under their instructions the goods were despatched to places outside U.P. This contention of the assessee was not accepted by the Sales Tax Officer and he was assessed to tax under the Central Sales Tax Act. The assessee appealed and the appellate authority set aside the assessment order with a direction to the Sales Tax Officer to afford an opportunity to the assessee to lead evidence to prove his case that the sales were intra-State and not....
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.... so, what should be the rate of tax payable on these turnovers?" Now under section 3 of the Central Sales Tax Act 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. In the instant case it appears that the assessee entered into contracts of sale with dealers of U.P. but despatched the goods to places outside U.P. The goods were despatched by rail and the railway receipts were made out in the name of the assessee. Thereafter the railway receipts were endorsed in favour of the purchase....