TaxTMI 
TaxTMI 
2021 (2) TMI 247
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....il Nadu Sales Tax Appellate Tribunal, Coimbatore ('the Tribunal' for brevity) in C.T.A.Nos.69 to 73 of 1996. By the said order, the Tribunal allowed the appeals filed by the first respondent-assessee and set aside the assessments made under the provisions of the Central Sales Tax Act, 1956 (hereinafter referred to as 'CST Act') done by the Commercial Tax Officer, Podanur assessment circle. 2. The facts, which are necessary for the disposal of the writ petitions, are as hereunder: The first respondent dealer-assessee is a registered dealer under the provisions of the CST Act in Hyderabad. The Commercial Tax Officer, Podanur assessment circle, while examining the records of M/s.Universal Heat Exchanges Limited, Coimbatore, (....
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....ellate authority has not appreciated the nature of transaction and proceeded to treat as inter-state sales, notwithstanding the fact that there is no privity of contract between M/s.UEHL and the ultimate parties with whom the assessee had entered into composite engineering contract. It is also contended that the contract between the assessee and the sub-contractor M/s.UEHL, pursuance to which fabrication was done and the fabricated items were despatched according to the instructions of the assessee, do not result in a completed sale at Coimbatore. It is further contended that the assessee only secures components for completing the contract entered into for the purpose of pure labour work. Therefore, the stand taken by the Assessing Officer ....
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....of the sub-contract and the sample which was produced before the Tribunal, had held that the first respondent-assessee was having a composite contract for manufacture of finished products to be supplied in various States and in compliance of such transaction, they entered into a sub-contract for supply of certain goods with M/s.UEHL at Coimbatore and after finishing the job work on the raw materials supplied, such components were taken to the respective site of the customers of the assessee. Further, the Tribunal found that the title to the goods was never transferred from the State of Tamil Nadu to the ultimate buyer in other States and therefore, it is not a case that the sale was completed as per the condition stipulated in Section 3(a) ....
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....or in the course of import or export. Section 3 explains as to when a sale or purchase of goods is said to take place in the course of inter-state trade or commerce. To qualify as a sale to have been taken place in the course of inter-state trade or commerce, two conditions have been stipulated, which are highly exclusive on account of the use of the expression "or". The conditions are as follows: A Sale or purchase of goods shall be deemed to take place in the course of inter-state trade of commerce if the sale or purchase (a) occasions the movement of goods from one State to another or (b) is effected by a transfer of documents of title to the goods during their movement from one State to another. Therefore, if the sale or purchase....
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....d by the first respondent. 8. The question, as to whether movement of goods from the State of Tamil Nadu, at the instance of the sub-contractor, to another State, could be construed as a sale in the course of inter-state trade or commerce. Indisputably, the title to the goods, though in the form of a raw material, continued to remain with the first respondent-assessee. What was entrusted with the UEHL was only a job work and the specifications have been clearly set out in the sub-contract. Therefore, the Tribunal rightly took into consideration the nature of the transaction and also took note of the important fact that the contract is a composite contract executed by the first respondent outside the State of Andhra Pradesh, for which, the ....