1997 (11) TMI 504

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....nal, having their place of business at 347, Mint Street, Madras-79, are dealers in paper and plywoods, coming within the jurisdiction of Deputy Commercial Tax Officer, Peddunaickenpet (South) Assessment Circle, Madras-1. The total and taxable turnover of the assesseedealers were determined at Rs. 5,54,219 and Rs. 3,85,000 respectively by the assessing officer. In respect of the taxable turnover to the tune of Rs. 3,85,000, it is said, the assessee-dealers purchased plywoods from a registered dealer at Arunachala Pradesh, wherein the goods, viz., plywood is stated to be exempt from tax. It appears, the assessee-dealers effected further sales, while the goods were in transit to another registered dealer at Madras. The assessing officer taxed ....

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...., viz., plywoods from Arunachala Pradesh to Madras, pursuant to a contract of sale. It is also not in dispute that the said Arunachala Pradesh dealer effected the despatch of the said goods as requested for by the assessee-dealers. Equally, it is also not in dispute that the assessee-dealers effected a subsequent sale of the said goods, while they were in transit to another registered dealer at Madras. The moot issue covering the question as framed above is as to whether such a subsequent sale, on the facts and in the circumstances of the case, is exempt from tax under C.S.T. Act falling under the sanguine and statutory provisions adumbrated under section 6(2)(a) of the CST Act. 7.. For answering the ticklish issue so posed, better it is....

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....the course of inter-State trade or commerce. (i)(a) Section 9 deals with the levy and collection of tax and penalties. According to sub-section (1) thereof, the tax is to be levied by the Government of India and the tax so levied shall be collected by the Government in accordance with the provisions of sub-section (2) in the State from which the movement of goods commenced. (b) A proviso thereto is also appended and the said proviso prescribes certain parameters or conditions required to be fulfilled before ever the appropriate State Government inheres the power to tax a subsequent inter-State sale. The subsequent sale must have to be happened during the movement of goods from one State to another and that apart, such a subsequent ....