2017 (5) TMI 173

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....re is bad, as also the consequential direction to deposit security to the extent of tax, whereas revenue contends that its interest is not protected, inasmuch as in the event, appropriate proceedings are drawn, the amount which may be held payable as penalty would not be recoverable. Facts of the case are that the mobile squad of District Aligarh of the department intercepted transport vehicle bearing registration No. U.P. 78 BT 6197, coming from Kanpur. At the time of detention, the driver produced sale invoice of M/s Ridhi Oil dated 3.3.2017, bilty no. 1555 issued in favour of the transporter, which was undated, Form 21 dated 3.3.2017 of M/s Ridhi Oil, Kanpur, as well as Form-49 downloaded from State of Madya Pradesh of the same date i.e....

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.... in subsequent decision delivered in M/s Radhey Shyam Paper Stores Vs. Commissioner of Sales Tax, 1994 U.P.T.C. 35, as also in another decision in Commissioner of sales Tax Vs. M/s Jinendra Enterprises, Agra, 1993 U.P.T.C. 1157. Learned Counsel has further invited attention of the Court to a decision of this Court in Commissioner, Trade Tax, U.P. Vs. Dalu Ram Ganpat Ram, (2010) 33 VST 433, in order to contend that in the facts of the case, sale effected by the revisionist was during movement of goods and would be covered by the provision contained under Section 3 (b) of the Central Sales Tax Act. Learned counsel for the revenue, on the other hand, submits that the question as to whether transaction is covered by Section 3 (b) or not can be....

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....f goods. Sub-Section (7) thereof, reads as under:- "48. (7) The officer seizing the goods shall serve on the dealer or, as the case may be, the person in charge an order in writing mentioning the fact of such seizure and indicating the amount, not exceeding such amount as would be sufficient to cover the penalty likely to be imposed, on deposit whereof in cash, the goods so seized may be released in favour of the dealer or, as the case may be, the person in charge: PROVIDED that the Commissioner or such other officer, not below the rank of a Deputy Commissioner, as may be authorised in this behalf by the Commissioner, may, for sufficient reasons to be recorded in writing, direct that the goods be released without any deposit or on depos....

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....ences and terminates in the same State it shall not be deemed to be a movement of goods from one State to another by reason merely of the fact that in the course of such movement the goods pass through the territory of any other State." A bare perusal of the provision contained under Section 3 would clearly indicate that sale or purchase of goods would be taken to be in the course of intra-State trade or commerce, if it is affected by transfer of goods during movement from one State to another. Explanation 1, however, clarifies the substantive clause as to how the movement of goods shall commence. The Tribunal has observed from the respective plea taken by the revisionist before the authorities and before the Tribunal that necessary ingred....