TaxTMI 
TaxTMI 
2009 (10) TMI 857
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....de Kerala and the local office is only a selling branch engaged mostly in local sales. During the year 1999-2000, the respondent accounted inter-State sales to the tune of Rs. 87,34,475 to Mahe. Even though C forms were produced to claim concessional rate, the assessing officer demanded from the respondent proof of transport of goods from the depot in Kerala to the buyer in Mahe, which the respondent failed to produce and consequently C forms filed were rejected and the turnover was assessed under the local Sales Tax Act. Even though the first round appeals were dismissed, the Tribunal merely based on the C forms produced by the respondent and based on observation in a judgment of this court, allowed the appeals against which this revision ....
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....nsported from Cochin to Mahe, then the details of such transport would find entry in the entry check-post maintained by Sales Tax Department at Mahe. Therefore, in our view, there is no justification for the respondent's failure to produce proof of transport from Cochin to Mahe. As held in the decision above-referred, we are of the view that mere production of C form is not sufficient proof of physical transport of goods from one State to another. C form only shows that an inter-State purchase for local sale is accounted by a dealer in one State. If dealers in two States collude, there is absolutely no difficulty for the dealer to account local sales as inter-State sales by getting the dealer in the other State to account bogus inter-S....