2002 (9) TMI 806

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.... (Assessment), Sales Tax, Special Circle II, Ernakulam. While completing the assessment in respect of the assessee for the relevant years, the assessing authority disallowed the following claims of exemption made under section 6(2) of the Central Sales Tax Act, 1956 (hereinafter referred to as "the CST Act"): 1986-87 ... Rs. 50,17,537.00 1987-88 ... Rs. 31,84,914.00 1988-89 ... Rs. 46,00,265.00 1989-90 ... Rs. 4,53,114.00 1990-91 ... Rs. 27,99,864.00 1991-92 ... Rs. 29,63,052.00 1993-94 ... Rs. 7,63,225.00 1994-95 ... Rs. 1,42,15,090.00 1995-96 ... Rs. 62,42,389.00 The assessee claimed exemption on the ground that the related turnovers represent subsequent sale of goods during its movement inter-State. The d....

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....riated to the contract at place outside Kerala. 4.. The assessee effected sale of these goods to the purchasers while the goods were in movement as provided in section 3(b) of the CST Act. These sales effected by the assessee under section 3(b) of the CST Act while the goods were in movement are exempt from levy of any tax under the CST Act in terms of section 6(2) of the CST Act. The goods directly despatched to the purchaser as aforesaid and sale of which was effected by transfer of documents of title to the goods during their movement from one State to another are taken delivery by the purchaser and taken into their stores. Thereafter, these goods were issued to the assessee for erection from the stores of the purchaser in terms of th....

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....According to the assessee, so far as the supply order is concerned, the materials which are not available with the assessee would be directed to be manufactured by the other units. Many clauses in the supply order show that the company is entitled to verify the supplies even before their despatch and those goods are insured with the Insurance Company. It has also come in evidence that the assessee has endorsed the receipts in favour of Cominco Binani Zinc Limited. Thus, according to the learned counsel, if we read the supply order, it will definitely show that it is actually a sale taking place inter-State. 6.. On the other hand, learned Government Pleader submitted that the goods are actually arrived in Kerala and delivery has to be ....

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....hat in this case, there is indivisible contract. So far as this case is concerned, according to us, it is not indivisible. It contains two parts: supply order and service order. According to us, the Tribunal was not correct in holding that there was only one contract. The work order will show that it contains two parts; supply order and service order. Price is also shown separately. The right of the buyer to inspect the goods before they are transported is also preserved. So also, the goods are insured. When the goods were transmitted, the assessee transferred the title to the property to Cominco Binani Zinc Limited. The Tribunal has not considered this matter in detail. The Tribunal has relied on the decision of the Madras High Court in Su....