TaxTMI 
TaxTMI 
2020 (1) TMI 1126
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....ibunal'), in Revision Case No. DN-106 of 2012, whereby, the findings of the Assessing Authority has been upheld, the order passed by the Appellate Authority, setting aside the assessment order passed by the Assessing Authority has been set aside, and the revision filed by the Revenue has been allowed. 3.The petitioner is a firm, dealing in coal and hard coke, and they purchase and sale the same in the State of Jharkhand. For the assessment year 2005-2006, the petitioner submitted the annual return under the Bihar Sales Tax Rules, 1976, wherein, the total turnover of the petitioner was shown as Rs. 2,65,03,530.50, in which, the counter-sales made to the purchasers outside the State, but claimed as sale within the State, was shown for Rs. 1,82,38,663/-. The petitioner also simultaneously filed the return under the Central Sales Tax (Jharkhand) Rules, 1957, showing the amount of Rs. 1,82,38,663/- as sales to the parties, destined outside the State, claiming as sale to be made within the State, and paid the tax thereon under protest. 4.Admittedly, the sale of coal was made by the petitioner to the different consignees within the State of Jharkhand, by way of 477 number of blue co....
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.... border of the State, concluded it to be inter-State sale, and set aside the order passed by the Appellate Authority. Aggrieved thereby, the petitioner has preferred the present writ application. 6.During the pendency of this writ application, the counter-affidavit has been filed on behalf of the respondent State, bringing on record the resolution dated 23.12.1997, issued in exercise of the powers conferred by sub-section (2a) of Section 31 of the Bihar Finance Act, 1981, giving clarifications about the road permits. This resolution appears to have been taken by the State Government after the decision of the Division Bench of Patna High Court in Laxmi Hard Coke's case (supra), specifying three colours of the Form XXVIII-B, for transportation of goods. It provided that Form XXVIII-B in green colour shall be used for transportation of goods from any place outside the State. Form XXVIII-B of blue colour shall be used for transportation of goods from inside the State to any place outside the State, and in case of intra-State movement of goods, Form XXVIII-B in pink colour shall be used. It is the case of the respondent State that since the petitioner had used blue coloured Form XXVIII....
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.... It is issued under the local State Act for transporting the goods beyond the check posts in the State and not for transporting them across the border of State. Issue of Form XXVIII-B, to our mind, cannot be a determining factor. It is not relevant and to take this into account would be an extraneous circumstance. It is undisputed that the buyers outside the State purchased the goods, paid the price took delivery at the business premises of the assessee and transported the goods themselves in the trucks engaged by them. It is quite apparent that sale was complete within the State of Bihar. To take out the goods outside the State it was not necessary for the assessee to issue Form XXVIII-B. Perhaps, best that could be said would be that it facilitated the movement of the goods in the State of Bihar but it was not meant for the purpose for crossing the border of the State. As noted above, this form is prescribed under the State Act and the rule framed thereunder to check evasion of sales tax under the State law. We do not think it was at all necessary for the assessee petitioner to issue Form XXVIII-B and it, therefore, cannot be linked with the contract of sale to hold that sale in ....
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.... was paid under protest. Learned counsel submitted that this return clearly shows that the petitioner knew that they were inter-State sales and accordingly, submitted the return showing them as inter-State sales, but claiming that they were actually not the inter-State sales, and also paid the tax with the intention to claim the refunds afterwards. It is submitted by the learned counsel for the State that there is no illegality in the impugned order / Judgement passed by the Assessing Authority as well as the Tribunal, treating the transactions made by the petitioner as inter-State sales, and not intra-State sales, as claimed by the petitioner. 12.Learned counsel for the State has further argued that Section 3 of the Central Sales Tax Act, 1956, prescribes when a sale or purchase of goods is said to take place in course of inter-State trade or commerce, and it clearly provides that when the sale or purchase occasions the movement of the goods from one State to another, such sale or purchase shall be deemed to take place in course of inter-State trade or commerce. It is submitted by learned counsel that admittedly in this case also, though the purchases of the coal were made in the....
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....e State of Bihar was unified. After the bifurcation of the State in the year 2000, the State Government of Jharkhand in its Department of Commercial Taxes, came out with the letter dated 10.01.2002, as contained in Annexure-B to the counter-affidavit, wherein it was clearly stated that unless the satisfaction about the inter-State sale, as on the four points detailed in the said letter is arrived, the transaction cannot be considered to be inter-State sale. This letter does not speak anything about the colours of the road permit Forms XXVIII-B. The letter categorically indicates that only on the basis of the fact that in the sale / purchase invoices / cash memos, the purchaser has been shown to be outside the State, the transaction cannot be treated as inter-State sale, unless the satisfaction is arrived at after verifying the documents on the four points as detailed in the letter. 16.We have gone through the assessment order as well as the Revisional Judgement passed by the Tribunal, with the help of the learned counsels for the parties, and we find that neither in the impugned assessment order, nor in the impugned Judgement passed by the Tribunal, there is any mention that the a....