COMMISSIONER OF TRADE TAX Vs. VIJENDRA ENGINEERING

JUDGEMENT

(1.) PRESENT revision under Section 11 of the U.P. Trade Tax Act, 1948 (hereinafter referred to as, 'the Act') is directed against the order of Tribunal dated December 10, 1998 relating to the assessment year 1995 -96 under the Central Sales Tax Act, 1956.

(2.) DURING the year under consideration, dealer/opposite party (hereinafter referred to as, 'the dealer') had made stock transfer through its commission agent M/s. M. S. P. Automobiles, Virudhunagar, Tamil Nadu, for Rs. 7,38,680. Dealer had appointed M/s. M. S. P. Automobiles, Virudhunagar, Tamil Nadu as its consignment agent for sale of stock transfer by a written agreement. Under the terms of the agreement commission agent had to pay 90 per cent amount in advance and 10 per cent subsequently. The assessing authority treated the stock transfer as inter -State sales merely on the ground that as per the terms of the agreement, commission agent had to pay 90 per cent of the value of the goods. The first appeal filed by the dealer was rejected. Dealer filed second appeal before the Tribunal. The Tribunal by the impugned order, allowed the appeal and accepted the plea of the dealer. The Tribunal held that the movement of goods to Tamil Nadu was not in pursuance of any prior contract of sales. The goods were dispatched as per the agreement to the commission agent for sale at Tamil Nadu. It has been held that during the course of stock transfer, the freight incurred was debited in the account of the dealer.

(3.) NO one appears on behalf of the dealer/opposite party.