Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | First explanation to s.3 s.6 Central Sales Tax Act Inter-State sale |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Sale of Goods Act, 1930 (3 of 1930) Central Sales Tax Act, 1956 (74 of 1956) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Central Sales Tax Act, 1956 – First explanation to s.3; s.6 – Inter-State sale – Benefit of exemption u/s.6(2) – Goods delivered to carrier for transmission – If a timeframe can be imposed for delivery of goods to be taken therefrom – Circulars in question inter alia treated retention of goods beyond 30 days (as per the later Circular) in transporters’ godown as cut-off period – After that date, assessee was deemed to have had taken constructive delivery of goods and sale beyond that period within the State was held to be local sales and subjected to sales tax under the State Act – In first set of appeals (C.A No.2217 of 2011 & C.A No.2220 of 2011), High Court quashed the two circulars – In another set of appeals also (C.A No.10000 of 2011 and C.A No.10001 of 2011) following the aforesaid judgment, High Court quashed the orders of statutory authorities imposing tax under State Act and invalidated the two circulars – Held: A legal fiction is created in first explanation to s.3 – That fiction is that the movement of goods, from one State to another shall terminate, where the good were delivered to a carrier for transmission, at the time of when delivery is taken from such carrier – No concept of constructive delivery either express or implied in the said provision – Movement of the goods, for the purposes of s.3(b) would terminate only when delivery is taken, having regard to first explanation to that section – It does not qualify the term ‘delivery’ with any timeframe within which such delivery shall have to take place – Thus, fixing of timeframe impermissible – High Court rightly held in the judgment assailed in C.A No.2217 of 2011 that there is no place for any intendment in taxing statutes – Judgments of the High Court in the four appeals, not interfered with – Rajasthan Sales Tax Act, 1954 – Sale of Goods Act, 1930 – s.51 – Interpretation of Statutes |
Judge | Hon'ble Mr. Justice Aniruddha Bose |
Neutral Citation | 2020 INSC 368 |
Petitioner | Commercial Taxes Officer |
Respondent | M/s. Bombay Machinery Store |
SCR | [2020] 6 S.C.R. 521 |
Judgement Date | 2020-04-27 |
Case Number | 2217 |
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