2021 (3) TMI 797

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.... 2. The writ petition has been filed by the State challenging the order dated 08.9.2000 passed by the second respondent in TC(R) No. 1578 of 1997. 3. The issue involved in this case is squarely covered by the decision of the Hon'ble Division Bench of this Court in the case of State of Tamil Nadu Vs. Annamalaiar Mills Ltd. [reported in (2015) 83 VST 536] wherein the relevant portions read thus : "5.The Tamil Nadu Sales Tax Appellate Tribunal, after verifying the facts stated above by the assessee, in the light of the documents referred to above and by applying the principles laid down by the Hon'ble Supreme Court in South India Viscose Ltd v. State of Tamil Nadu, reported in 48 STC 232 and also by applying the view of the TNTST, ....

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....e appellants and sellers (Federation). It is also found that only after the payment of the sale price the goods have been delivered to the appellants. On the facts available as above, we examined whether the transactions fall under the category of (i)mentioned under section 3(a) of the Act or not. We have also examined the fact whether the transactions which falling under section 4 of the CST Act 1956. Regarding the first point whether the transaction is falling under section 3(a) of the CST Act, 1956, the relevant section is extracted below. "Section 3(a) of the CST Act, 1956: A sale or purchase of goods shall be deemed to take place in the course of interstate trade of commerce if the sale or purchase- a) Occasions the movement ....

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....il Nadu only in pursuance of that contract. It has been categorically held by the Supreme Court in various decisions. In the case of South India Viscose Ltd., v. State of Tamil Nadu, reported in 48 STC 232, "that if there is a conceivable link between the contract of sale and movement of goods from one State to another in order to discharge the obligation under the contract of sale the inter-position of an agent of the seller, who may temporarily intercept the movement, will not alter the interstate character of the sale". In this case, even considering the said depot as a branch of the Federation, the real fact that there is a movement in pursuance of contract from one State to another cannot be denied. Another point relied on by the learn....

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....39;ble TNTST, Chennai in the case relied on by the appellants. We also have examined the fact since the transit insurance has been paid by the Federation for the goods where the transactions can be considered as a local sale. In this regard the learned Authorised Representative contended that the transit insurance charges have been paid by the appellants to the Federation. Anyhow this is not a vital point to decide the transaction whether it is a local sale or interstate sale. 7.We have examined the contract, delivery order, sales bills issued by the Federation, transport invoices etc. These records clearly show that the movement is in pursuance of the agreement entered into by the buyers regarding specific quantity. In the sale bill, t....