TaxTMI 
TaxTMI 
2020 (1) TMI 939
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.... Tribunal in C.T.A.Nos.106 and 107 of 2000, whereby the learned Tribunal after a detailed fact finding exercise with regard to branch transfers made by the Assessee held that Assessee did not make inter-state sales under the provisions of the Central Sales Tax Act. The operative portion of the order passed by the Tribunal are quoted below for ready reference: "23. With regard to the second part agitated in this appeal, which are not covered by any 'D7' records but disallowed exemption by the Assessing Authority our independent verification of the entire set of documents available with the assesses would show the following and we give the findings as under: [a] The assessee had established a branch and was maintaini....
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....r a particular customer, so as to include the possibility of any adversion; [L] The depot Manager at the discretion to deliver the goods in any quantity or to any customer of their choice; [m] The depot had not acted as conduct pipe and there was no other correspondence with the Head were likely to be supplied from the depot from time to time, but for the instances pointed out in Part No:1; [n] The depot Manager had absolute discretion to supply the goods of any origin from the stock lying at the depot situated outside the State; [o] The form-F filed by the other State depot is found to be in order: Even though some suspicious have been raised with regard to the nature of signature appended to the Form-F, that observation is based ....
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....ice to the depot was the exact price at which the goods are to be sold would show that the appellants had realized the same amount contained in price tag. It is the direction of the principal office in determining the nature of the amount to be realized from the ultimate consumers. There is no case for prima-facie even to suspect the nature of the transactions held in the depot at Kerala. The mere existence of the copy of the records relating to the branch available at Coimbatore will not alter the nature of sale effected in the State of Kerala. 26. It cannot be said that there was insufficiency of the documents to claim the exemption. As per the decision of the Madras High Court in the case of Moti and Company versus State of Tami....
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.... has no relevance in determining the nature of the transactions. From the verification of the factual records, it is seen that the stock transfers have been effected in lump sum but the sale has been effected in piecemeal manner in the State of Kerala, as could be seen from the statement filed in respect of sales effected in other States throughout the year. The month-war opening stock register, goods receipt, sales effected and the closing stock at the end of the month are given in the form of a Statement. Such statement do not indicate anything contrary to the established principles of law as decided by the High Court and Supreme Court stated above. 30. On the basis of the decision of the Allahabad High Court in the case of Barei....
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.... concerned. They were held to be stock transfers made land not inter-state sales. However, in respect of transactions where the goods were dispatched to Berlia Chemicals, since the Certificate of Registration did not show that as the place of the business of the petitioner as contended the transaction were held to be inter-state sales. 32. Following the ratio of the decision of the High Court, we have distinguished the transactions into two parts- one is direct sales land another is stock transfer to the Branch. Such a distinction was drawn on the basis Department. In view of the above factual findings,we would determine the taxable turnover under part-I as under: 1996-97 Claim of exemption disal....
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.... the degree of proof required for the imposition of penalty is quite difference from and is of a much higher order that that required for the purpose of marking a best judgment assessment. However, in this case, we have deleted substantial portion of the turnover made liable to tax by the Assessing Authority. During the year of assessment, an amendment has been brought to Section 12[3] of the TNGST Act fixing the penalty on a liable to tax, but for the inspection that turnover would not have been brought to assessment under CST Act, which relates to direct inter-state sales. As we observed in respect of certain transactions contained as per the letters secured by the officers of the Enforcement Wing land therefore we hold that the levy of p....