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High Court held there was inter-state trade VAT was not applicable
High Court held there was inter-state trade VAT was not applicable
Petitioner federation supplied milk to Ministry of Defence (MoD) in J&K.; Its supplies were intercepted and its members were asked to procure VAT registration. On writ petition filed, High Court held that sale/supply of goods by petitioner from manufacturing units in Gujarat and Rajasthan to J&K; was inter-state trade and, therefore, not subject to levy and collection of VAT.-900222
1 .Petitioner federation supplied milk to Ministry of Defence (MoD) in Jammu & Kashmir.
2 .Its supplies were were intercepted and its members were asked to procure registration with Commercial Taxes Department for the purpose of VAT and route the stocks through local offices.
On writ petition filed by the petitioners, the High Court held as under:
3 .We are of the considered view that the sale/supply of goods viz. the Tetra Pack Milk by petitioner Nos. 2 and 3 from their manufacturing units in the States of Gujarat and Rajasthan to Army locations of the Northern Command in the State of Jammu and Kashmir is a sale in the course of inter-state trade and, therefore, not subject to levy and collection of VAT.
4 .It is, therefore, a distinguishing example of sale in inter-state trade, which is subject to levy and collection of tax under the CST Act and not to VAT under the Act.
5 .We also hold that petitioners are not required to get registered as dealers under the Act for aforementioned sales.
