TaxTMI 
TaxTMI 
2008 (7) TMI 906
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....a. For the assessment year 1991-92 it disclosed net turnover of Rs. 2,99,444.75 under the Central Sales Tax Act, 1956. The assessing authority, after examination of the account books, was not satisfied with the claims as set out by the dealer-opposite party with regard to the stock transfer. It rejected a part of the claim of stock transfer on the basis of material as collected by the Department in the survey dated August 5, 1991. In that survey, the surveying officer found that the cash book was posted up to July 31, 1991 and ledger up to July 6, 1991. Certain account books were seized. The assessment order dated August 31, 1992 was challenged before the first appellate authority in First Appeal No. 1659 of 1992 who by order dated March 1,....
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....ons covered by the aforesaid documents are nothing but "Central sales". The value of such transactions has been determined by the first appellate authority to the tune of Rs. 2,35,093.08. The Tribunal, without looking into the facts that the goods were moved in pursuance of prior contract to outside the State of U.P., was swayed away by irrelevant consideration that the goods reached at the head office at Delhi first and thereafter they were despatched to the party concerned and the bill was raised by the head office and Central sales tax was collected by the head office. The learned counsel for the dealer-opposite party, on the other hand, submits that the goods were moved from Noida to Delhi not in pursuance of the prior contract but f....
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.... written. The goods ultimately reached to S/s. Lakhandwala Construction Industries Pvt. Ltd., Bombay though the bill was drawn at Delhi office. More or less similar position is in respect of other forwarding notes, being Nos. 127 and 129. Before the Tribunal it was argued by the dealer-opposite party that the goods mentioned in the forwarding notes were sent to Delhi head office first. The entry of goods is recorded in the stock register and thereafter the goods were moved to the party concerned. In this connection reliance was place on transfer challan No. 18, dated April 27, 1991 in respect of forwarding note No. 101. The Tribunal was very much influenced by the fact that the goods reached to the ultimate customer though the name and a....
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....ide the State of U.P. is admitted. The very fact that in the forwarding note, the name and address of the purchasing dealer find place is a very strong circumstance to indicate that the goods were moved in the course of inter-State trade or commerce. There was an agreement in between the dealer-opposite party and the party outside the State of U.P. and the said agreement occasioned the movement of goods from the State of U.P. to another State such as Bombay, may be via Delhi, as the dealer contends. Merely because in the account books an attempt was made that the goods were received by the head office at Delhi and thereafter they were despatched to the party outside State of U.P. will not change the nature and character of the transaction. ....
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.... name of ultimate purchasing dealer could find place in the forwarding note issued by the factory at Noida. The other transactions are of similar nature. In view of the above discussions, it is difficult to agree with the Tribunal that it was a case of stock transfer. It is held that it was a case of stock transfer from Noida to Delhi and ultimate sale from Delhi to purchasing dealer. The Tribunal was thus not justified in interfering with the order of the first appellate authority rejecting the claim of stock transfer in respect of Rs. 2,35,093.08. The learned counsel for the dealer-opposite party laid much emphasis on the fact that the first appellate authority has accepted similar kind of transactions as stock transfer and there wa....