2020 (3) TMI 7

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....the appeal of the Assessee and holding that the goods transfer in question supported by "F" Form is taxable under the provisions of the Central Sales Tax. The relevant findings of the learned Tamil Nadu Sales Tax Appellate Tribunal, is quoted below for ready reference:- 7. The Department has not pointed out any discrepancy in the Form F declarations to render them as the acceptable. The authorities below have not established that there is a movement of goods against a particular order or direction in order to impose tax under Section 3(a) of CST Act, 1956. The grounds for rejection of the claim relying on certain clauses in the agreement read in isolation and relying on payment received in advance and sale made on the same day are ....

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....ch a contingency of outright sale not being recorded in the order of the authorities below, the assessment on the turnover impugned is not legally valid and is set aside. 7. In 70 STC 456, it is held as under : " The condition precedention imposing sales tax under the CST Act is that the goods must have moved out of the State in pursuance of the contract entered into between the seller and the purchaser. It will be the duty of the Revenue to establish that the sales in question were duly inter-state sale". The Department in the case on hand has not established that the claim of the Assessee under Section 6-A is not acceptable either because the documents were incomplete or that the details recorded therein were un....

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....ry incident for holding the sale as an inter-state sale, inviting imposition of tax under the Central Sales Tax Act is the movement of goods from one State to another, in pursuance of a pre-existing contract with the seller. Therefore, merely on the assumption or presumption of any such kind of pre-existing contract, the Assessing Authority could not have imposed the tax under the provision of Central Sales Tax Act. Since necessary documents and evidence were already furnished before the Assessing Authority himself, furnishing of the same again before the Appellate Authorities was not at all called for. And therefore, on this premise, the Appellate Authority should not have confirmed the finding of the Assessing Authority that the Assessee ....