TaxTMI 
TaxTMI 
2013 (4) TMI 529
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....s. By referring to the illustrations relating to the date of despatch, delivery note number, quantity, date of sale and referring to pattials received from the timber agent, by the Proceedings in CST 302508/90-91 dated 26.2.1999, the Deputy Commercial Tax Officer disallowed the claim of exemption on consignment sales at Rs. 19,09,732/- holding that loads have been moving upon specific orders only and the transactions are to be constructed as falling under Section 3(e) of Central Sales Tax Act. The assessing authority levied penalty of Rs. 2,87,892/- under Section 9(2) of CST Act read with Section 12(3) of TNGST Act. 3. Being aggrieved by the order of DCTO, the Assessee preferred appeal before the Appellate Assistant Commissioner (CT). The Appellate Assistant Commissioner (CT) allowed the appeal holding that Assessing Authority has not established any conceivable link between the buyer and the Assessee nor the records recovered during the inspection revealed such link between the ultimate buyer and the Assessee. Referring to (1970) 26 STC 354 [TATA ENGINEERING AND LOCOMOTIVE CO. LTD. V. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, JAMSHEDPUR AND ANOTHER], the Appellate Authority h....
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....essee contended that as per the decision of the Hon'ble Supreme Court in (1970) 26 STC 354 [TATA ENGINEERING AND LOCOMOTIVE CO. LTD. V. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, JAMSHEDPUR AND ANOTHER], each transaction has to be verified to conclude that there was completed sale and the Assessing Authority has not verified all the transactions. It was further contended that Tribunal failed to consider that Assessee's agents sold goods to various Timber dealers and they have not sold it to the individual customers and the Tribunal has failed to consider that the Assessing Authority has not verified all the transactions. 7. Mr.A.R.Jayapratap, learned counsel for Department has submitted that with reference to the covering letters to the despatches, the Assessing Authority found that the goods moved in pursuance of the contract and that the order of the Assessing Authority was rightly restored by the Tribunal and no questions of law are involved in this Revision. 8. We have considered the rival submissions and perused the materials on record. 9. The principles of inter-State sales are well settled. A sale of goods is in the course of inter-State trade, if the sale ....
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....ed by the agent to the principals from time to time showing the gross amount of the bill and deduction on account of commission and incidental charges. (e) copies of bills issued by the agents to the purchasers; (f) extract of the ledger account of the principal maintained in the books of agents only signed by such agents. (g) copies of railway receipts or lorry receipts under which the goods were so dispatched and (h) a register showing the date and mode of remittance of the amount to the principal." Rule 4(3-A) of CST (TN) Rules provides for the particulars to be furnished by the Assessee when called for by the Assessing Authority. 12. The Assessing Authority has given illustrations relating to the date of despatch, delivery note number, quantity, date of sale made by the Bombay agent. Referring to the pattials received from the Bombay agent and the covering letters, the Assessing Authority inferred that the agent at Bombay has sold the timber in one lot to one buyer which has been despatched by the Assessee at Pollachi. Since the same quantity of consignment sent from Pollachi was sold in one lot to one buyer, the Assessing Authority took the view that the load....
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.... 6-A the dealer had an option of filing a declaration in form F; after such amendment, he does not have such option, insofar as in terms of the amended provision, if the dealer fails and/or neglects to file such a declaration, the transaction would be deemed to be an inter-State sale. It is to be noticed that for the aforementioned purpose also, the Parliament advisedly used the expression "deemed". If the expression "deemed" is interpreted differently, an incongruity would ensue. .............. 60. A statute for the purpose of its interpretation must be read in its entirety. It is to be given a purposive construction. Applying Heydon's rule, it must be held that the amendment was necessitated not only to make the dealer to file such a declaration imperatively but also to see that such movement of goods becomes inter-State sale by raising a legal fiction, as "having been occasioned in course of an inter-State sale". In other words, if such a declaration is filed and on an inquiry made pursuant to or in furtherance of the particulars furnished are found to be correct by the assessing authority, the result thereof which is evidenced by the expression "thereupon" shall in vi....
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....uyer and the Assessee. 17. As per the decisions of the Hon'ble Supreme Court, the Assessing Authority has not examined individual transactions. Assessing Authority referred to few instances and drew inference that the entire transactions were inter-State sale. It is not known whether the Assessee filed the statutory declaration and whether any enquiry was held in respect of individual transaction. The Assessing Authority came to the conclusion on the basis that the entire goods sent as consignment were sold as one lot within a couple of days which cannot be done unless or otherwise there is a pre-existing order for the goods and that loads have been moved upon specific orders only. Thus without examining the individual transactions, the entire transactions was treated as inter-State sale falling under Rule 4(3-A) of CST (TN) Rules. 18. Learned counsel for Assessee submitted that one such letter is dated 26.4.1991 which is beyond the assessment year 1990-91. It was also submitted that the slips and covering letters referred in the assessment order were not correlated with the illustrations pointed out in the assessment order. After referring to few instances, the Assessing....