By C. B. Thakar
Advocate
G. G. Goyal
Janak Vaghani
Chartered Accountants
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Central Sales Tax – Inter-State Sale or Stock Transfer-Dispatch of Goods to Branch Outside the State to Agents/Branch- In Absence of Documentary Evidence of Prior Contract – Is Stock Transfer. Section 6A of The Central Sales Tax Act, 1956.
FACTS
M/s. Akkamamba Textiles Ltd., Tanuku was manufacturing, selling and transferring the cotton yarn and waste. It was finally assessed by the C.T.O., Tanuku-I circle, for assessment year 1993-94, under Central Sales Tax Act, 1956. The assessing authority had allowed exemption on inter-state stock transfer to its Maharashtra (Bombay and Ichalkaranji), West Bengal and Tamil Nadu based four selling depot-agents under section 6A of the CST Act upon production of requisite Forms. The Deputy Commissioner (CT), Eluru Division, took up suo moto revision of the CTO ‘s order, disallowing exemption as turnover, relating to the sales said to have been made through depots, branch in Maharashtra, West Bengal and Tamil Nadu on certain grounds. Aggrieved by the aforesaid revision orders of the Deputy Commissioner (CT), Eluru division, the dealer preferred appeal before the Tribunal. The Tribunal allowed the appeal and remanded the matter to the DC (CT), Eluru, to give fair and reasonable opportunity to the appellantsassessee. In pursuance of these remand orders, the revisional authority passed consequential orders levying tax once again on the disputed turnovers under section 3(a) of the CST Act. Aggrieved of these orders the dealer preferred another appeal before the STAT , A.P. This time the appeals were allowed in favour of the assesse holding that these disputed transactions are not inter-state sales but are mere stock transfers to the four non-resident selling depot agents. The department filed revision before the Andhra Pradesh High Court.
HELD
In the considered opinion of the high court, the questions of law said to have been arisen are not the questions of law in as much as all the questions relate to the finding of facts. The assessing authority, after examination of returns filed by the dealer and on scrutiny of the books of accounts, granted exemption relating to depot/branch transfer of cotton yarn made from Tanuku to Maharashtra (Bombay-Ichalkaranji), West Bengal and Tamil Nadu and allowed the exemption of the turnovers in exercise of the powers conferred u/s. 6A of the CST Act. The tribunal also recorded finding of facts and stated in its order that the revisional authority had reversed the order of the dealer merely on surmises and conjecture without citing specific instances and without any additional material. The finding of facts recorded by the tribunal is not challenged before the High Court. Accordingly, the High Court held that there is no question of law that is required to be answered, thus dismissed the revision petitions filed by the department and confirmed the order of tribunal allowing claim of stock transfer under section 6A of the CST Act.
