TaxTMI 
TaxTMI 
1997 (12) TMI 619
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....Anna Nagar, Madurai-20, are dealers in chemicals and oils. It appears that the assessee-dealers had effected purchases of paper from other States and sold the same, while in transit without actual handling in the relevant assessment year 1986-87. The turnover of such transactions of sale of paper amounts to Rs. 38,435. The assessee-dealers in respect of the said transactions were able to produce "E1" forms; but, however, they were unable to produce "C" forms from the dealers in the other States, to whom, the transit sales of paper were effected. During the course of assessment, it appears, the assessee-dealers claimed exemption in respect of the said transit sales of paper. 3.. The assessing officer, namely, the Deputy Commercial Tax ....
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....t the dealers, to whom inter-State sales of paper were effected by the assessee-dealers were registered dealers and therefore, the non-production of "C" forms covering the transactions, in the instant case, is of no consequence. The Tribunal also placed implicit reliance upon two decisions emerging from the Madhya Pradesh High Court, namely, Commissioner of Sales Tax v. Shivnarayan Jagatnarayan [1978] 42 STC 315 and Chimanlal Voerchand v. Additional Assistant Commissioner of Sales Tax [1988] 68 STC 278 for holding that it is not necessary for the assessee-dealers to produce "C" forms to claim exemption under section 6(2) of the CSTA. 8.. The Revenue, aggrieved by the said decision of the Tribunal, as stated above, resorted to the present....
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....al importance to note at this juncture that sub-section (2) of section 6 of the CSTA, which was added by Act No. 31 of 1958 with effect from October 1, 1958 was substituted by Act No. 61 of 1972 with effect from April 1, 1973. The decisions of the Madhya Pradesh High Court were admittedly rendered for the assessment years prior to the substitution of sub-section (2) by Act No. 61 of 1972. There could have been no chance for the Madhya Pradesh High Court to take into consideration the effect of the substituted sub-section (2) of section 6 of the CSTA, although the decisions were rendered subsequent to the substitution, inasmuch as they were dealing with the assessments relatable to the years prior to such substitution of the said sub-section....
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....EI/EII forms to the prescribed authority, and (ii)a declaration "C" form is obtained from the purchaser, as provided in section 8(4)(a), if the sale is to a registered dealer, if, however, the sale is to the Government, not being a registered dealer a certificate, referred to in section 8(4)(b), has to be obtained. Further, what is requisite is that the goods are to be of the descriptions referred to in sub-section (3) of section 8. These aspects of the matter are getting revealed from the salient provisions, in the shape of sub-section (2) of section 6-a newly substituted sub-section to be effective from April 1, 1973 and sub-section (3) and clauses (a) and (b) of sub-section (4) of section 8 of the CSTA. 16.. The instant case is admitt....