2011 (9) TMI 907

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....tion has been raised, which is as follows: It is not disputed between the parties that under section 3F of the U.P. Trade Tax Act the net turnover referred to in sub-section (1) of section 3F has to be reduced by the amount representing the value of the goods transported under the works contract covered by sections 3, 4 and 5 of the Central Sales Tax Act, 1956 as would be apparent from reading of section 3F(2)(b)(i) itself. The High Court in the case of Garg Photo Films, Agra v. Commissioner of Trade Tax [2005] UPTC 230 (para 7) has laid down as follows: "7. Section 3F(2)(b)(i) contemplates the deduction of the amount representing the value of goods covered by sections 3, 4 and 5 of the Central Sales Tax Act. If the works contract ....

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....ce of a prior contract of sale and both the movement of goods and sale must be inseparably connected. In the present case, it is seen that before the movement of goods, the contract of sale was in existence and movement of goods was in pursuance of contract which were used in the works contract, therefore, transaction was covered by the section 3 of the Central Sales Tax Act and the Tribunal has rightly held so." From the aforesaid, it is apparently clear that what is important to be examined under section 3F(2)(b) is as to whether the movement of the goods from outside the State in pursuance of a prior contract of sale and both the movement of goods and sale must be inseparably connected. This court finds that such a plea was raised ....