{"id":6837,"date":"2025-11-17T11:00:10","date_gmt":"2025-11-17T05:30:10","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=6837"},"modified":"2025-11-17T11:00:10","modified_gmt":"2025-11-17T05:30:10","slug":"movement-of-goods-under-pre-existing-orders-is-inter-state-sale-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/movement-of-goods-under-pre-existing-orders-is-inter-state-sale-hc","title":{"rendered":"Movement of Goods Under Pre-Existing Orders is Inter-State Sale | HC"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000410294\/movement-of-goods-to-branches-under-pre-existing-orders-constitutes-inter-state-sale-cestat\">State Of Maharashtra Versus Beardsell Ltd. (2025) 36 Centax 83 (Tri.-Del)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Justice Dilip Gupta<\/strong>, President &amp; <strong>Shri P.V. Subba Rao<\/strong>, Member (T)<\/li>\n<li><strong>Ms Rama Ahluwalia<\/strong>, Advocate, for the Appellant.<\/li>\n<li><strong>S\/Shri N.V. Tapare<\/strong> &amp; <strong>Sandeep D. Ghaterao<\/strong>, Advocates, for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The assessee moved goods from its manufacturing unit to branch offices in other States, and in earlier proceedings under the Customs Act, 1962, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) had found that such movement resulted from pre-existing orders placed by customers at the branch offices. In proceedings under the Central Sales Tax Act, 1956, the assessing officer held that the assessee could not take a plea contrary to the stand taken before CESTAT and concluded that the transaction constituted an inter-State sale and not a branch transfer. The Maharashtra Sales Tax Tribunal held that the CESTAT decision was not applicable as it dealt with classification of pre-fabricated buildings and not with the characterisation of the transaction as a branch transfer or a sale, even though it was not the assessee\u2019s case that the process stated before CESTAT had undergone any change. The matter was accordingly placed before the High Court.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The High Court held that once the assessee had taken a particular stand before CESTAT in the context of the Customs Act, 1962, it could not adopt a different stand under the Central Sales Tax Act, 1956. The Court observed that the manner in which customers placed orders at the branch offices and the manner in which the assessee supplied goods to customers could not change between the two statutory proceedings. The Court further held that, in view of the earlier finding that the movement of goods was pursuant to pre-existing customer orders, the assessing officer was justified in treating the transaction as an inter-State sale rather than a branch transfer under Sections 3(a) and 6A of the Central Sales Tax Act, 1956. The High Court accordingly upheld the assessing officer\u2019s order and allowed the appeal in favour of the department.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li>Ashok Leyland Ltd. v. State of T.N. \u2014 (2004) 3 SCC 7 \u2014 Followed [Paras 9, 14, 21]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2006%20(193)%20E.L.T.%20325%20(Tribunal)&amp;itemType=AP\">Beardsell Ltd. v. Commissioner<\/a> \u2014 2006 (193) E.L.T. 325 (Tribunal) \u2014 Applied [Para 3]<\/li>\n<li>English Electric Company of India Ltd. v. Deputy Commercial Tax Officer \u2014 (1976) 4 SCC 460 \u2014 Followed [Para 22]<\/li>\n<li>Hyderabad Engineering Industries v. State of Andhra Pradesh \u2014 (2011) 4 SCC 705 \u2014 Followed [Paras 7, 12, 13, 20]<\/li>\n<li>Union of India v. K.G. Khosla &amp; Co. Ltd. \u2014 (1979) 2 SCC 242 \u2014 Followed [Para 23]<\/li>\n<li>Yousuff Radio v. Board of Revenue \u2014 (1979) 43 STC 525 \u2014 Followed [Paras 7, 26]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: State Of Maharashtra Versus Beardsell Ltd. (2025) 36 Centax 83&hellip;<\/p>\n","protected":false},"author":8,"featured_media":6839,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-6837","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Movement of Goods Under Pre-Existing Orders is Inter-State Sale | HC<\/title>\n<meta name=\"description\" content=\"HC holds goods moved to branches under pre-existing customer orders constitute inter-State sales, not branch transfers; assessee cannot take contradictory stands in proceedings.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/movement-of-goods-under-pre-existing-orders-is-inter-state-sale-hc\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Movement of Goods Under Pre-Existing Orders is Inter-State Sale | HC\" \/>\n<meta property=\"og:description\" content=\"HC holds goods moved to branches under pre-existing customer orders constitute inter-State sales, not branch transfers; 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