2017 (12) TMI 981

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....Kanmani Annamalai, learned Additional Government Pleader appearing for the first respondent and Mr.K.S.Ramasamy, learned Senior Panel Counsel appearing for respondents 2 & 3. Though the fourth respondent has been served and his name is printed in the cause list, none appears for the fourth respondent. 2.The short issue, which falls for consideration in the instant case is whether the clarification issued by the Commissioner dated 07.04.2006, is valid and proper. The impugned clarification reads as follows: "COMMERCIAL TAXES DEPARTMENT From To Dr.T.Prabhakara Rao, I.A.S., Tvl.Surbhit Impex Private Ltd., Commissioner of Commercial Taxes, 9, Hafizan Building, 5th Floor, Chepauk, Chennai-600 005.&....

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....le, the transaction is an interstate transaction and liable for tax at 4% under the Central Sales Tax Act, 1956, which has been remitted by the petitioner. 4.The contention raised by the petitioner is absolutely flawed for more than one reason. Firstly, as per the terms and conditions of auction as stipulated by the second respondent/Customs Department, on receipt of payment of sale value along with taxes and duties, delivery order will be issued indicating the delivery period and the period of delivery will be 7 calendar days counted from the date of Delivery Order by MSTC/date of release order by the Principal/Seller, which is the Customs Department. Before participating in the auction, the petitioner is required to inspect the materia....

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....ourse of interstate trade or if the sale or purchase occasioned the movement of goods from one State to another. 8.The petitioner s case is that he participated in the E-auction from Mumbai and therefore, this occasioned the movement of goods and therefore, it is an interstate sale. This submission cannot be accepted for the simple reason that though the petitioner participated in the E-auction, which is probably to facilitate the bidding process, the materials were inspected by the petitioner within the control of the Customs House, Chennai and the goods were delivered on payment of full sale value including taxes at Chennai. Merely because, one of the officers of the Customs Department, issued a receipt to the petitioner accepting 4% o....