Madhya Pradesh High Court
Dcm Shriram Consolidated Ltd. & Ors. vs The Addittional Comm. & Ors on 2 February, 2012
W.P. No.2010/2004 02.02.2012
We have heard both sides.
The short question involved in this writ petition is whether the sale in question was an "inter-state sale" or an "intra-state sale", that is a sale within the State of Madhya Pradesh.
The plant and machinery of 100 MW Thermal Power Station Power House No.1 at Korba was proposed to be sold by the Madhya Pradesh Electricity Board, for which tenders were invited. It was clearly stipulated in the notice inviting tenders (NIT for short) that the sale was to be made to such bidders who are interested either (1) to run the power house at its existing location or (2) to run the power house at any other location.
It was clearly stipulated in the NIT that the sale was to be on 'as is where is' basis.
Pursuant to the said NIT, the petitioners submitted their offers. The petitioners' offer was accepted and the properties were sold. Thereafter, the petitioners claim they took the purchased property to Kota, Rajasthan.
The contention of the State and the finding in the assessment appellate and revisional orders is that it was a sale within the State of Madhya Pradesh and not an inter- state sale.
On the other hand, the writ petitioners who are the assessees contend that it was an inter-state sale. Inter-state sale is said to take place when there is an inter-state movement of goods for the purpose of or in the course of sale.
When the title to the goods passes before the inter- state movement, it will be and intra-state sale or sale within the State.
Once the sale is complete with the title to the goods having passed, thereafter even if the purchaser takes the goods purchased to other State, the same would not amount to an inter-State sale.
In view of the above, there is no force in the writ petition. It is accordingly dismissed.
(Sushil Harkauli) (Tarun Kumar Kaushal) Acting Chief Justice Judge