TaxTMI 
TaxTMI 
2010 (8) TMI 824
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....eceived from M/s. Mody Sons Pvt. Ltd., Mumbai, the applicant supplied goods worth Rs. 26,86,615 to their branches situated at Vapi and Silvasa (referred to as "works" by the applicant). The applicant was assessed by the Assistant Commissioner of Sales Tax (Assessment), Borivali Division, Mumbai, for the period April 1, 1990 to March 31, 1991, both under the BST Act and the CST Act. It was contended on behalf of the applicant, during the course of assessment, that the goods worth Rs. 26,86,615 sold by the applicant to M/s. Mody Sons Pvt. Ltd., were inter-State sales because though M/s. Mody Sons Ltd., had an office at Nariman point, Mumbai, the goods were transported to the branches ("works") of the purchaser at Vapi and Silvasa. The claim of the applicant was disallowed by the assessing authority on the ground that the delivery of goods was given in Maharashtra and there was no movement of goods from Mumbai to Vapi. Consequently, the assessment resulted in demand of Rs. 1,69,836 which includes interest under section 36(3)(a) and 36(3)(b) at Rs. 348 and Rs. 69,748, respectively and penalty under section 36(4A) at Rs. 100 was raised under the BST Act and additional demand of Rs. 1,15....
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....yer, is also set out on the bills and it is also recorded in the bills that the transportation of goods is "From Bombay to Vapi" . It is submitted that the purchasers also claimed MODVAT from the Excise Department in Vapi. Thus, the movement of the goods from Mumbai to Vapi was from one State to another. As a result, the sale is covered under section 3(a) of the CST Act. It is submitted that the applicant therefore rightly claimed sales under section 75 of the BST Act and in support thereof C forms were also produced. It is submitted that the assessing authority, the Deputy Commissioner of Sales Tax (Appeals) as well as the Tribunal erred in treating the said sales as local sales only on the ground that the delivery was given locally and there was no movement of goods from Mumbai to Vapi as a result of the sale/contract. It is submitted that though the present case of the applicant is squarely covered by the decision of this court in Commissioner of Sales Tax, Maharashtra State, Bombay v. Nivea Time [1998] 108 STC 6, wherein it is, inter alia, held that the question whether it is an inter-State sale or intra-State sale, does not depend upon the circumstances as to in which State th....
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....urse of inter-State trade or commerce it is mandatory for the sale or purchase to occasion the movement of goods from one State to another. It is therefore necessary to see as to when it can be said that the sale or purchase has occasioned movement of the goods from one State to another. In the case of Oil India Ltd. v. Superintendent of Taxes [1975] 35 STC 445 (SC), there was no specific provision in the agreement for movement of crude oil from Assam to Bihar. Despite that, considering the facts and circumstances of the case, the honourable Supreme Court held the sales to be sale in the course of inter-State sales. It was observed that: "Even though clause (7) of the supplemental agreement does not expressly provide for movement of the goods, it is clear that the parties envisaged the movement of crude oil in pursuance of the contract from the State of Assam to the State of Bihar. In other words, the movement of crude oil from the State of Assam to the State of Bihar was an incident of the contract of sale. No matter in which State the property in the goods passes, a sale which occasions 'movement of goods from one State to another is a sale in the course of inter....
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....ourt, the assessee manufactured watches at its factory at Daman. The auction of watch movements by the Customs (Preventive) Collectorate, Bombay was open to actual users only. In the conditions of auction sale, it was mentioned that the purchaser had to be a small-scale unit and an actual user. In the cash memos issued by the customs authorities to the assessee, the registration number of the assessee's factory at Daman as small-scale unit was also mentioned. The watch movements purchased by the assessee were in fact moved by the assessee to its factory at Daman and used there in the manufacture of watches. It was also certified by the Superintendent of Excise that the goods by the assessee reached the assessee's factory at Daman and were used there in manufacture of watches. It was held by the sales tax authority that the purchases were intra-State purchases since the bills were issued by the customs department in the name of Bombay office of the assessee and the property in the goods passed to the assessee in Bombay. This court, applying the ratio laid down in various cases including the ratio laid down by the honourable Supreme Court in Oil India Ltd. [1975] 35 STC 445 a....