2011 (8) TMI 1044

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....he Karnataka Sales Tax Act, 1957 (hereinafter referred to as "the KST Act", for brevity) and the Central Sales Tax Act, 1956 (hereinafter referred to as "the CST Act", for brevity). The appellant-firm is also having one more manufacturing/assembling unit at Canacona, Goa, manufacturing captive diesel generating sets of more than 10 KVA capacity and the said unit was registered under the Goa Sales Tax Act and the CST Act. 2. The assessee entered into a contract of sale with Telecom Electrical Division, Laddy Hill, Mangalore, in respect of electrical works contract of the value of Rs. 3,13,650. In order to execute the said works contract they procured the DG sets from their branch office at Goa unit. The Goa unit raised an invoice in the n....

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....be restored. The assessee entered appearance in the statement of objections and argued the matter. After hearing, the revisional authority set aside the order of the appellate authority and restored the addition. Aggrieved by the same, the assessee preferred appeal in STA No. 60 of 2003 before this court. This court by order dated October 13, 2008 set aside the order of the revisional authority and remanded the matter back for fresh consideration on the ground that the revisional authority has not taken into consideration all relevant materials. After such remand, after giving sufficient opportunity to the assessee and after considering all relevant materials, the revisional authority held that the deletion of addition was improper as the c....

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.... is because of inter-State sale and therefore, it is not liable to pay tax under the Karnataka Sales Tax Act. The said judgment has no application to this case because, the head office is at Mangalore, the contract was entered into between head office and the Telecom Department at Mangalore. The contract was to be executed at Mangalore. The consideration for the contract was paid at Mangalore. In order to execute the contract work the appellant got the material from the unit at Goa, while sending the DG sets, the Goa unit raised an invoice in the name of Telecom Department at Mangalore and they were constrained to pay the tax at Goa. Merely because they have paid tax at Goa, is no reason to hold that no sales tax is payable under section 5B....