2013 (12) TMI 1130

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.... order passed by the Intelligence Officer, Kottayam. The facts as disclosed would show that the petitioner is a dealer in engineering goods and is a registered dealer under the Kerala General Sales Tax Act and Central Sales Tax Act. For the year 1997-98 he has filed annual return and the taxable turnover. The final assessment was completed. On 24.01.2001 the Intelligence Officer issued notice to the petitioner alleging inter-state sales of diesel generator sets sold by M/s. Jeevan Diesel and Electricals Limited, Pondicherry to 10 purchasers in the State of Kerala for which the petitioner has canvassed purchase orders for and on behalf of the manufacturers at Pondicherry. Proceedings were taken under Section 45A of the K.G.S.T. Act and the p....

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....e of receiving orders, raising invoices and receiving the value of goods are immaterial if the goods, as a result of the covenant in the contract of sale or as an incident of the sale, had moved from one State to another, which indicates an inter-State sale. The petitioner's counsel also relied upon the judgment of the Supreme Court in Bharat Heavy Electricals Ltd. v. Union of India and others [(1996) 102 STC 373]. Having considered the above matter, the learned Single Judge formed an opinion that transactions in question has got the characteristics of an inter-State sales. It is further found that there is no material to point out that any purchase was made by the petitioner from the Pondicherry dealer or any sale was effected by the petit....

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....r and acceptance of the deal in question was between the local purchasers and the revision petitioner. It is found that the despatch of goods by the Pondicherry dealer and the consequential delivery as per the instructions given by the petitioner to local customers would make it a local sale between the local purchaser and the petitioner and therefore the transactions falls within the sale. This finding is absolutely baseless as "sale" is defined under Section 2 (xxi) of the KGST Act and in Section 2 (g) of the CST Act wherein it is clearly stated to mean, transfer of property in goods by one person to another, whether in pursuance of a contract or not, in the course of trade or business for cash or other valuable consideration. The materia....