TaxTMI 
TaxTMI 
2002 (9) TMI 910
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....ated 23.12.1996 passed by the Deputy Commissioner of Taxes, Silchar Zone, Silchar has been challenged. 2. The facts, in brief, are that the Corporation procures bamboos from the various Districts of Assam and from the neighbouring States of Tripura and Mizoram for the purpose of manufacturing papers in the two units at Panchgram and Nagaon. The Corporation is registered under the Assam General Sales Tax Act and for the accounting year 1993-94 they submitted their returns and assessment was accordingly made by the Superintendent of Taxes, Hailkandi. Subsequently a notice was issued to the petitioner Corporation to show cause stating that in the assessment made earlier, there were some errors in the sense that freight was not included in t....
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....on such purchases. 4. The learned counsel for the petitioner submits that the orders were placed for supply of bamboos outside the State of Assam, namely the State of Mizoram and Tripura with the stipulated that delivery is to be effected at the premises of the Corporation at Panchgram, Cachar. For supply and transportation of the bamboos from outside the State of Assam, the proof in support of the collection from outside the State of Assam has also to be accompanied with the Bill. Accordingly, the bamboos are transported and delivered at the Cachar Paper Mill. The above facts are not in dispute as we find from the impugned order that the concerned authorities were also satisfied from the documents on record that the bamboos were collect....
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....s ; (ii) the goods must actually move from one State to another, pursuant to such contract of sale ; the sale being the proximate cause of movement; and (iii) such movement of goods must be from one State to another State where the sale concludes. It follows as a necessary corollary of these principles that a movement of goods which takes place independently of a contract of sale would not fall within the meaning of inter-state sale. In other words, if there is no contract of sale preceding the movement of goods, obviously the movement cannot be attributed to the contract of sale. Similarly, if the transaction of sale stands completed within the State and the movement of goods takes place thereafter, it would obviously be independently of t....
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....ry Finance Corpn. (supra) will be relevant and the same are quoted below: "Further, the State Legislature cannot by law, treat sales outside the State and sales in the course of import as "sales within the State" by fixing the situs of sales within its State in the definition of sale, as it is within the exclusive domain of the appropriate Legislature, i.e., Parliament to fix the location of sale by creating legal fiction or otherwise. The majority has clearly opined that the State where the goods are delivered in the transaction of inter-state sale, cannot levy a tax on the basis that one of the events in the chain has taken place within the State ; so also where the goods are in existence and available for the transfer of right t....