RAI BAHADUR KACHORIMAL SUKHLAL BANSWARA Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) BY an order dated 28-3-62 passed by the Assistant Commissioner, Excise & Taxation, Banswara, the applicant was assessed to tax under the Central Sales Tax Act for the period 1-4-57 to 23 10-57. Liability for Central Tax was determined as being from 1st July, 1957 and tax amounting to Rs. 713. 59 was assessed. A penalty of Rs. 151/- was also imposed. The assessee appealed to the Deputy Commissioner (Appeals) against the order by two separate appeals one for the tax-and another for the penalty.

(2.) THE main contention of the assessee in regard to the assessment of tax was that the sale was not in the course of inter-State trade and commerce, but outside State of Rajasthan, and hence could not be taxed by the Rajasthan State even under the Central Sales Tax Act. THE Deputy Commissioner (Appeals) after examining the terms of the agreement and considering the nature of the transactions in the light of the agreement and the enunciation of law by the Supreme Court in the case of Tata Iron & Steel Co. (1960 STC 665) held that the sale in question was sale in the course of inter State trade and commerce, and that the movement of the goods incident to the sale being from Rajasthan, tax under the Central Sales Tax Act was chargeable in Rajasthan.