Therefore, the aforesaid circulars issued by the Commissioner aforesaid on 15.4.1998 (S. No. The definition of "dealer' in s. 2(g) of the Act is in the following terms : That firm purchased chemical and colour from a Gujarat based company, and the goods reached the godown of the carrier transport company on 12th May, 2000. 27.4.2020. Eastern Electrics, Chennai Vs. (b) to a registered dealer other than the Government, if the goods are of the description referred to in sub-section (3) of section 8, Versus COMMISSIONER OF INCOME TAX, CALICUT & ANR. It is also the respondents' case that the requisite forms and certificates were duly furnished pertaining to such sales. 1132A) and 16.9.1997 (S. No. We must add here that the decision in the case of Guljag (supra) was subsequently carried up in appeal before this Court. In Civil Appeal No.2217 of 2011, the period of assessment is 1995-96. Former US Police officer charged for shooting Dead unarmed Black man in 2017; Supermarket run by Acid attack Survivors opens in Mumbai; HC grants Anticipatory Bail to Accused on account of delay in FIR 'English only way to uplift poor', says Andhra Pradesh Govt; SC disagrees The subsequent Circular dated 15.4.1998 purportedly issued to ameliorate the situation for dealers created by previous circular dated 16.9.1997, merely ended up extending the time limit of 10 days to 30 days without undoing the damage done by the previous circular by propounding a particular view of constructive delivery. Claim of benefit under Section 6(2) of the 1956 Act was rejected and tax along with interest and penalty was imposed under the State Act by Commercial Tax Officer, Anti-Evasion Circle-I, Kota after a survey by two orders, both dated 11th December, 1997. S. No. Duration of transit.-(1) Goods are deemed to be in course of transit from the time when they are delivered to a carrier or other bailee for the purpose of transmission to the buyer, until the buyer or his agent in that behalf takes delivery of them from such carrier or other bailee. (i) any foreign diplomatic mission or consulate in India; or This order was challenged by the revenue by filing two revision petitions before the High Court, as two appeals were disposed of by the Board by its order dated 24.11.2004. 10001 of 2017 relate to another assessee, Unicolour Chemicals Company. That judgment is under appeal before us. Therefore, the proposition of law by the learned Commissioner in the impugned circulars that "as per legal position, `transit' gets over as soon as a reasonable time elapses for the consignee to elect whether he would take the goods away or leave them in the transporters premises, because at the conclusion of reasonable time there is deemed to be a constructive delivery of goods from the transporter to the consignee", cannot be said to be a correct legal position. Assistant Commercial Tax Officer. These were not referred to in the orders of the Tax Assessment Officer. After that date, the assessee was deemed to have had taken constructive delivery of goods and sale beyond that period within the State of Rajasthan was held to be local sales and subjected to sales tax under the State Law. Civil Appeal No.10000 of 2017 and Civil Appeal No. 34 Commercial Tax Officer jobs available on Indeed.com. (b) any consular or diplomatic agent of any mission, the United Nations or other body referred to in sub-clause (i) or sub-clause (ii) of clause (a), purchases any goods for himself or for the purposes of such mission, United Nations or other body, then, the Central Government may, by notification in the Official Gazette, exempt, subject to such conditions as may be specified in the notification, the tax payable on the sale of such goods under this Act." ((CJ) DESAI, D.A. It paid the tax but discovered perusal of the decision of this court New India Sugar Mills Ltd. vs. Commissioner of Sales Tax that the transactions were be exigible to sales tax. Your email address will not be published. 14. Keeping in view these factual aspects and the discussions at the Govt; level, it is reiterated that the reasonability of the time should be looked into after analysing the facts and circumstances of each case and the usual period of treating constructive delivery which may even extend upto thirty days instead of ten days as suggested in the above referred circular. If after arrival of the goods at the destination, the consignee asks the transporter expressly or impliedly, to retain the goods at his godown until further directions, then the carrier ceases to hold the goods as transporter, and in the eyes of law, the goods are as much in possession of the consignee as if he had taken them into his own godown. As per the settled legal concept this sequence of events tantamounts to constructive delivery of the goods by transporter to the consignee and transit ends. They were sold to a firm in Jaipur in two tranches, after 55 days and 80 days from the date of arrival. It is found that trade is often claiming large exemptions under this provision, particularly in respect of paper, dyes and chemicals, etc. (b) the dealer effecting such subsequent sale proves to the satisfaction of the authority referred to in the preceding proviso that such sale is of the nature referred to in clause (a) or clause (b) of this sub-section. Imposition of tax, interest and penalty under the State Act was quashed. 5. Any sale by the consignee thereafter will be local sale and benefit of Section 6(2) will not be available. In view of this, it was desired by the above referred circular that the AAs should ascertain the fact that whether the goods remained with the transporter beyond reasonable time. The Tax Board, while deciding the issue in favour of revenue, referred to the aforesaid two circulars in upholding the concept of constructive delivery. The legislature has eschewed from giving the said word an expansive meaning. The Apex Court in detail considered the definition of Importer as well as the nature of transaction and finally examined the issue in the context of Article 286 of the Constitution of India , relevant provisions of the CST Act and Customs Act by observing that sale in the course of import’ carries three essential features – (i) that there must be a sale; (ii) that goods must actually be imported into the territory of India; and (iii) that the sale must be part and parcel of the import. The High Court, following the judgment in the case of Bombay Machinery Store (which we are treating as the lead case in this judgment), quashed the orders of the statutory authorities in both the appeals and also invalidated the two circulars. 7. It appears that application of this provision has been made more or less mechanical by the assessing authorities in as much as on furnishing form E-I/E-II and C forms without looking into the material facts regarding single inter-State movement of such goods, benefits are conferred to such dealers. New commercial tax officer careers are added daily on SimplyHired.com. 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. On these facts the appeal was dismissed. These goods had reached the godown of the transport company on 25th July, 2001. *VELLANKI FRAME WORKS VERSUS THE COMMERCIAL TAX OFFICER, VISAKHAPATNAM* *Forum-Supreme Court of India* *Date-13th January,2021* *Sub: What is high seas Sale under the Central Sales -tax Act as well as Customs Act and who is an importer- Landmark decision * SASIDHARAN having Advocates For the Petitioner N. Inbarajan, Advocate. (7) Where part delivery of the goods has been made to the buyer or his agent in that behalf, the remainder of the goods may be stopped in transit, unless such part delivery has been given in such circumstances as to show an agreement to give up possession of the whole of the goods." If the movement of the goods from one State to another terminates, the subsequent sales will be treated as intra-State sales and benefit of the above sub-section (2) of Section 6 will not be available in such cases. The State Trading Corporation Of India Ltd. & Others Vs. Ramesh Patodia The petitioner (Walchandnagar Industries Limited), was asked by the respondent to appear before him. VENKATARAMIAH, E.S. A legal fiction is created in first explanation to that Section. The circulars issued by the Commissioner in the aforesaid manner like done vide Circulars dated 16.9.1997 and 15.4.1998 are likely to hamper and throttle such quasi-judicial discretion which vests with the assessing authorities. Any connected applications shall also stand disposed of. But when the goods are delivered to a carrier for transmission, first explanation to Section 3 of the 1956 Act specifies that movement of the goods would be deemed to commence at the time when goods are delivered to a carrier and shall terminate at the time when delivery is taken from such carrier. Sameer Jabbar Mulani Vs ITO Ward 1 Pandharpur Before the High Court, the revenue authorities has relied on section 51 of the Sale of Goods Act, 1930 (hereinafter referred to as the "1930 Act"). The Board sustained the view of the Deputy Commissioner (Appeals) in a composite order. The Commercial Tax Officer, Visakhapatnam And Others Judgment Dated 26-07-1963 of Supreme Court of India having citation (1964) 4 SCR 99 , (1963) 33 COMPCAS 1057 (SC) , AIR 1963 SC 1811 , 1963 (33) CC 1057 , include bench Judge HON'BLE CHIEF JUSTICE MR. B.P. If taking delivery is the test of termination of movement and not the landing of the goods in an importing State, Explanation 1 to section 3(b) of the Central Sales Tax Act would lead to anomalous results. 12. We shall narrate the factual context of Civil Appeal No.2217 of 2011, before we address the legal issue involved in these appeals, treating this to be the lead case. Gazetted officers are appointed from Indian Revenue Service (Income Tax) of Union Public Service Commission while non-gazetted officers are recruited by Staff Selection Commission Required fields are marked *. The candidates will be selected on the basis of performance in written test and/or interview. 10001 of 2017, revenue's case is that survey of the business place of the same firm revealed that:-, "the stock of taxable good colour chemical of price Rs.4,72,653/- has been found less and on doubt on the nature of sale showing in the section 6(2) of the Central Sales Tax Act and seeing the possibility of tax evasion the record found in the survey of the business firm has been seized." If the dealer fails to furnish this proof, then the assessing authority would be justified in concluding that the dealer had himself taken physical delivery of the goods from the carrier and thereby disallowing his claim of exemption under S. 6(2), CST Act. Such sale, it is the revenue's case, constituted sale within the State and hence taxable @12% per annum under the Rajasthan Sales Tax Act, 1954. The decision of the Delhi High Court in Arjun Dass Gupta and Bros. v. Commer of Sales Tax, New Delhi, reported in (1980) 45 STC 52, lays down the basic guidelines regarding exemption of sales under S. 6(2), CST Act. (3) If, after the arrival of the goods at the appointed destination, the carrier or other bailee acknowledges to the buyer or his agent that he holds the goods on his behalf and continues in possession of them as bailee for the buyer or his agent, the transit is at an end and it is immaterial that a further destination for the goods may have been indicated by the buyer. Thus, normally, the landing of the goods in the importing State and the delivery of the goods are almost simultaneous acts, although technically there will be some hiatus between the two. Yogeswaran, Advocate. It is therefore, enjoined upon the assessing authorities that in future they should not grant the benefit of exemption under S. 6(2), CST Act, simply on furnishing of the Form E-I/E-II and C Form. The low-stress way to find your next commercial tax officer job opportunity is on SimplyHired. As per these Associations, this approach has resulted in hardship to the dealers and avoidable harassment is being caused to them with adverse effect on the trade. There is no material to suggest such an acknowledgment was made by the independent transporter in these appeals. Sometime thereafter, the Sales Tax Appellate Tribunal by its order dated August 5, 1974 passed in T.A. The High Court under the judgment which is assailed in Civil Appeal No.2217 of 2011 rightly held that there is no place for any intendment in taxing statutes. 10000 of 2017, Civil Appeal No. It does not constitute professional advice or a formal recommendation. Looking to the facts and circumstances of each case, the doctrine of constructive delivery should be invoked and action be taken accordingly. 10. That condition is an acknowledgment to the buyer or his agent by the carrier that he holds the goods on his behalf. 25 commercial tax officer jobs available. It may be recalled that vide circular dated 16.9.1997 [S. No.1115B], instructions were issued clarifying therein the legal position of granting benefits under Section 6(2) of the CST Act, 1956. It has been clarified that the concept of constructive delivery shall also be invoked while determining when the transit comes to an end. Central Sales Tax Act, 1956 Sections 3 and 6 Sale Of Goods Act, 1930 Section 51 Rajasthan Sales Tax Act, 1954 - Transfer of documents of title were effected subsequent to goods reaching location within destination State - When goods are delivered to carrier for transmission movement of goods would be deemed to commence at time when goods are delivered to carrier and shall terminate at time when delivery is taken from such carrier - Said provision does not qualify term `delivery' with any timeframe within which such delivery shall have to take place - In such circumstances fixing of timeframe by order of Tax Administration of State is impermissible. The appellant Company is engaged in the business of leasing and fleet management of the motor vehicles and resale of used motor vehicles. The salary on Commercial Tax Officer post may differ from state to state as per the implemented pay … Quantum of sales for the year 1994-95 effected through the same process was Rs.3,15,639/- and for 1995-96 it was Rs.2,60,93/-. 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- We are of the view that the interpretation of the Division Bench of the Delhi High Court given in the case of Arjan Dass Gupta does not lays down correct position of law. Judgement Date: March 12... VLEX-852334153 (6) Where the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent in that behalf, the transit is deemed to be at an end. Vs. Pr.C.I.T. *Forum-Supreme Court of India* (quoted from the order annexed to the paper book). In fact, the very power to issue such circulars by the learned Commissioner giving a particular interpretation of law purportedly binding on all the assessing authorities is doubtful. Income Tax Officer as the name itself indicates is an officer who deals with the income tax related matters of the Central Board of Direct Taxes acronym as CBDT, a department of central government in India. In the two appeals in which the respondent is Bombay Machinery Stores, sales pertained to financial years before the circulars came into subsistence. Following are the job profile of Asst. These were brought against bilty and the documents were transferred to the same firm on 4th September, 2001. (b) if the subsequent sale is made - NAME OF THE POST : No. [(2) Notwithstanding anything contained in sub-section (1) or sub-section (1A), where a sale of any goods in the course of inter-State trade or commerce has either occasioned the movement of such goods from one State to another or has been effected by a transfer of documents of title to such goods during their movement from one State to another, any subsequent sale during such movement effected by a transfer of documents of title to such goods, - The appeals by Bombay Machinery Stores were allowed by the Deputy Commissioner (Appeals), Commercial Taxes, Kota following a decision delivered on 8th March, 1996 by the Rajasthan Tax Board in the case of CTO v. Bhagwandas & Sons (1996 Tax World 107). In the case of Arjan Dass Gupta (supra) principle akin to constructive delivery was expounded and we have quoted the relevant passage from that decision earlier in this judgment. Party Name: . There is no specific provision in the Sales Tax Act, either under the RST Act or under the CST Act, empowering the Commissioner to issue such circulars, as against such powers conferred under section 119 of the Income Tax Act on the Central Board of Direct Taxes. Citation : 2020 Latest Caselaw 344 SC Judgement Date : Deputy Commissioner (Admn) should ensure that, while ensuring the State revenue, no harassment shall be caused to the dealers by enthusiastic assessing authorities while determining the end of transit." Civil Appeal No.2220 of 2011 relates to the same firm but for the assessment year 1994-95. (a) a certificate duly filled and signed by the registered dealer from whom the goods were purchased containing the prescribed particulars in a prescribed form obtained from the prescribed authority; and The contents of this document are solely for informational purpose. 15. 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