Judgment

R. S. PATHAK, J:- The first petitioner, M/s. Sahney Steel and Press Works Ltd. (hereinafter referred to as "the Company"), is a public limited company having its registered office and factory at Hyderabad. The second petitioner, Shri Bhupendra Singh Sahney, is a Director and shareholder of that company. The company has branches at Amritsar, Bangalore, Bombay, Calcutta, Coimbatore and Delhi. The registered office of the Company at Hyderabad is registered as a dealer under the Central Sales Tax Act as well as under the Andhra Pradesh General Sales Tax Act.

2. The Company is engaged in the manufacture and sale of stampings and laminations made out of steel sheets which are utilised as raw material for making electric motors, transformers and similar goods. The branches of the company are mainly engaged in effecting sales and looking after the sales promotion and liaison work. The company manufactures (a) standard goods according to the companys own designs and specifications, (b) non-standard goods according to the designs and specifications supplied by customers. In the course of its normal business the registered office despatches both standard and non-standard goods manufactured at the Hyderabad factory to the branches. Such transfers made by the registered office to the branches at Bombay, Calcutta and Coimbatore of non-standard goods form the subject of the instant controversy.

3. According to the petitioner, the branch offices situate at Bombay, Calcutta and Coimbatore, which themselves are registered as dealers under the Central Sales Tax Act and under the related State Sales Tax Acts, receive orders from customers within and from outside the respective States for the supply of goods conforming to definite specifications and drawings. Those branch offices then advise the registered office at Hyderabad to manufacture and despatch the goods. On receipt of such advice from the branch, the goods are manufactured at the Hyderabad factory and thereafter despatches by the registered office to the branches by way of transfer of stock. While despatching the goods, sometimes intimation is also given by the registered office to the customer concerned about the despatch of the goods to the destination indicated by him. Such goods are booked to self and sent by lorries. The goods received by the branches from time to time, whether standard goods or non-standard goods, are entered into stock accounts of the branches and are kept in stock by the branches for ultimate delivery to the customers. On the goods reaching the branches, they are inspected by the customers and accepted by them where the customer are local parties. Where delivery has to be effected to customers of other States, the goods are despatched to them by the branch. The branches raise bills and receive the sales price. The branches furnish F forms to the registered office under S. 6-A of the Central Sales Tax Act in the case of stock transfers to the branches. These are the facts set forth in the writ petition.

4. It appears that the sale of non-standard goods was assessed to State Sales Tax under the Sales Tax Acts of Maharashtra, West Bengal and Tamil Nadu. The Commercial Tax Officer, Company Circle-II, Hyderabad, however, expressed the view that the company was liable to Central Sales Tax on the turnover of non-standard goods and rejected the contention of the Company that the pertinent turnover was not so liable. For the assessment year 1979-80 he made an assessment order dated May 4, 1981 assessing a turnover of Rs. 1,29,50,248.73 representing what the petitioners claimed to be stock transfers from the Hyderabad registered office to the branches outside the State of Andhra Pradesh. By way of abundant caution the petitioners had prayed that in the event of their objection to the imposition of Central Sales Tax being overruled they should be allowed time to collect C forms from the various customers to whom the branches had effected sales and to submit them to the