TaxTMI 
TaxTMI 
2008 (6) TMI 559
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....overs reported by it, the respondent produced its books of account before the assessing authority. The assessing authority held that the turnover of Rs. 14,225 by stock transfer from one branch of the respondent to its another branch at Bangalore is exempt, but as there was inter-State sale of photographic paper and film worth Rs. 33,50,727 by the respondent, it is liable to tax at 10 per cent on the said turnover. Questioning the same the respondent preferred an appeal to the Appellate Deputy Commissioner, inter alia, contending that inasmuch as it did not effect any inter-State sales but had effected sales within the State only and delivered the goods sold by it to buyers at its shop/godown at Hyderabad itself and as it was not aware of t....
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....er it is clear that the "sales" of photographic paper, etc., made by the respondent are but inter-State sales but not local sales, more so because the terminology used in the column "order of reference" the invoices raised by the respondent show that the goods sold by the respondent moved outside the State of Andhra Pradesh at the instance of the respondent only. It is his contention that the Tribunal, which did not correctly appreciate the ratio in Balabhagas Hulaschand v. State of Orissa [1976] 37 STC 207 (SC) erred in allowing the appeal filed by the respondent. There is no representation on behalf of the respondent. In Balabhagas Hulaschand case [1976] 37 STC 207 (SC) relied on by the learned Special Standing Counsel, the apex court ....
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....ent being inter-State sales is the head office of the respondent at Chennai receiving the payment for the goods sold by it at Hyderabad. The place of payment of price, in our opinion, is not much of consequence in deciding the question whether a sale is an inter-State sale or not, because as per section 20 of the Sale of Goods Act, in cases where there is an unconditional contract for sale of specific goods in deliverable state, the property in the goods passes to the buyer when the contract is made, and it is immaterial that time of payment of the price or the time of delivery of the goods or both are postponed. It is also useful to refer to sections 9 and 32 of the Sale of Goods Act, 1930, which read: "Section 9: The price in a contrac....
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....signed the said goods to his principal outside the State, the purchase of the goods made by him from the respondent would not make the transaction of sale made by the respondent transaction of inter-State sales. The assessing authority by relying on some authorisations read. "We hereby authorise Mr. Khailashpathi to purchase konica colour paper and dispatch the same to our own laboratory. This is for our own use and not for resale." issued by the principals of the person who purchased and took delivery of the goods from the respondent, came to a conclusion that the sales made by the respondent are inter-State sales. If we may say so even the said authorisations of the type also clearly establish that the persons who purchased the good....