STATE OF ANDHRA PRADESH Vs. SUVARNA ENTERPRISES

JUDGEMENT

(1.) This tax revision case is directed against the order of the Sales Tax Appellate Tribunal made in T.A. No. 21 of 1986 dated 11/08/1988.

(2.) M/s. Suvarna Enterprises, dealers in cotton, filed Central sales tax VI returns for the assessment year 1983-84 declaring their gross and net turnover at Rs. 17,34,567. Out of this amount, the assessee claimed exemption on a turnover of Rs. 1,18,020 on the ground that their turnover related to sale of lint purchased from Bellary in Karnataka State and sold to a dealer in Coimbatore in Tamil Nadu State.

(3.) The assessing authority as well as the Appellate Deputy Commissioner (C.T.), Kurnool took the view that the goods purchased by the assessee were consigned to Nandyal and thereafter they were sold to a dealer at Coimbatore. Therefore, they are of the view that these two were independent transactions and the assessee had brought the goods from Bellary to Nandyal and then sold to a dealer at Coimbatore. Accordingly, they held that the assessee was not entitled to claim exemption on this turnover under section 6(2) of the Central Sales Tax Act, 1956. The Tribunal, on facts, however, took the view that the goods were purchased by the assessee at Bellary, i.e., outside the State and they were despatched direct from the place of purchase to the dealer in Coimbatore. The goods were not brought into Andhra pradesh State nor did they move out of the Andhra Pradesh State. No element of sale had taken place in the Andhra Pradesh State and hence it could not be concluded that there was inter-State sale in Andhra Pradesh in the hands of the assessee relating to the goods. In this view, the Tribunal took the view that the goods purchased at Bellary were despatched to Coimbatore and that the disputed turnover could not be subjected to tax as relating to inter-State sales in the hands of the assessee and consequently allowed the appeal.