Page 60 - GSTL_14th May 2020_Vol 36_Part 2

162 GST LAW TIMES [ Vol. 36
DEPARTMENTAL CLARIFICATIONS CITED
Commissioner of Commercial Tax Circular No. F. 11(3)/CST/Tax/CCT/1997/1563,
dated 16-9-1997 ....................................................................................................................... [Paras 2, 4, 5]
Commissioner of Commercial Tax Circular No. F. 11(3)/CST/Tax/CCT/1/61,
dated 15-4-1998 ........................................................................................................................... [Paras 2, 4]
Commissioner of Commercial Tax Circular dated 19-7-1999 ............................................................. [Para 2]
REPRESENTED BY : Shri Milind Kumar, AOR, for the Appellant.
Shri P.V. Yogeswaran, AOR, for the Respondent.
[Judgment per : Aniruddha Bose, J.]. - All these four appeals are being
dealt with by this judgment as they all involve adjudication on a common ques-
tion of law arising out of Sections 3 and 6 of the Central Sales Tax Act, 1956 (1956
Act), which was operational at the material point of time. The question is as to
whether as a condition of giving the benefit of Section 6(2) of the said Act, the tax
authorities can impose a limit or timeframe within which delivery of the respec-
tive goods has to be taken from a carrier when the goods are delivered to a carri-
er for transmission in course of inter-State sale. For proper appreciation of the
dispute involved in these appeals, the aforesaid provisions are reproduced be-
low :-
“3. When is a sale or purchase of goods said to take place in the course
of inter-State trade or commerce. - A sale or purchase of goods shall be
deemed to take place in the course of inter-State trade or commerce if the
sale or purchase -
(a) occasions the movement of goods from one State to another;
or
(b) is effected by a transfer of documents of title to the goods dur-
ing their movement from one State to another.
Explanation 1 - Where goods are delivered to a carrier or other bailee for
transmission, the movement of the goods shall, for the purposes of clause
(b), be deemed to commence at the time of such delivery and terminate at
the time when delivery is taken from such carrier or bailee.
Explanation 2 - Where the movement of goods commences and terminates in
the same State it shall not be deemed to be a movement of goods from one
State to another by reason merely of the fact that in the course of such
movement the goods pass through the territory of any other State.
Explanation 3 - Where the gas sold or purchased and transported through a
common carrier pipeline or any other common transport or distribution
system becomes co-mingled and fungible with other gas in the pipeline or
system and such gas is introduced into the pipeline or system in one State
and is taken out from the pipeline in another State, such sale or purchase of
gas shall be deemed to be a movement of goods from one State to another.”
6. Liability to tax on inter-State sales. - [(1)] Subject to the other provi-
sions contained in this Act, every dealer shall, with effect from such date as
the Central Government may, by notification in the Official Gazette, ap-
point, not being earlier than thirty days from the date of such notification,
be liable to pay tax under this Act on all sales [of goods other than electrical
energy] effected by him in the course of inter-State trade or commerce dur-
ing any year on and from the date so notified :
[Provided that a dealer shall not be liable to pay tax under this Act on any
sale of goods which, in accordance with the provisions of sub-section (3) of
Section 5 is a sale in the course of export of those goods out of the territory
of India.]
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