LAWS(MPH)-1978-11-22

BHOJUMAL AND SONS Vs. COMMISSIONER OF SALES TAX

Decided On November 24, 1978
BHOJUMALAND SONS Appellant
V/S
COMMISSIONER OF SALES TAX Respondents

JUDGEMENT

(1.) THIS is a petition filed by the petitioner challenging the order of the Commissioner of Sales Tax passed in Revision Case No. 15/r (Central) of 1973-74 dated 20th June, 1974.

(2.) ACCORDING to the petitioner, the petitioner is a partnership-firm registered under the Partnership Act and is a dealer in oil, oil-seeds, oilcakes, etc. , in Sanyogitaganj, Indore. The petitioner is a registered dealer under the Central Sales Tax Act, 1956. This petition challenges an order pertaining to the assessment of the petitioner under the Central Sales Tax Act, 1956, for the assessment period beginning from 13th November, 1966, to 2nd November, 1967. It is alleged that, in the course of business, during the relevant period under assessment, the petitioner in the course of inter-State trade purchased from time to time groundnut oil-seeds worth in all Rs. 14,84,656 from dealers of Uttar Pradesh, Rajasthan and Punjab, who are registered dealers under the Central Sales Tax Act, and obtained from them certificates in form E-I. The selling dealers, according to the petitioner, were instructed to despatch the goods to Bombay and send the relevant railway receipts to the petitioner at Indore. The petitioner subsequently sold these goods to dealers in Bombay, who are registered under the Central Sales Tax Act, by transfer of these documents of title, the railway receipts, to those dealers against payment of price while the goods were still in transit.

(3.) ACCORDING to the petitioner, under Section 6 of the Central Sales Tax Act, as it stood at the relevant time, the subsequent sales in the course of inter-State trade effected by transfer of documents of title when the goods were in transit are not liable to tax. According to the petitioner, the petitioner under Section 6 was only expected to submit form E-I as required under the Central Act to seek this exemption.