S. SANKARASUBBAN, J. –

These T.R.Cs. are filed against the common order passed by the Sales Tax Appellate Tribunal, Additional Bench, Ernakulam, in 12 appeals. The assessment years are 1986-87 to 1991-92 and from 1992-93 to 1995-96. Assessee is M/s. Siemens Limited. The facts necessary for the disposal of this case are as follows :

Petitioner is an assessee on the rolls of the Assistant Commissioner (Assessment), Sales Tax, Special Circle II, Ernakulam. While completing the assessment in respect of the assessee for the relevant years, the assessing authority disallowed the following claims of exemption made under section 6(2) of the Central Sales Tax Act, 1956 (hereinafter referred to as "the CST Act") :

1986-87 ... Rs. 50,17,537.00 1987-88 ... Rs. 31,84,914.00 1988-89 ... Rs. 46,00,265.00 1989-90 ... Rs. 4,53,114.00 1990-91 ... Rs. 27,99,864.00 1991-92 ... Rs. 29,63,052.00 1993-94 ... Rs. 7,63,225.00 1994-95 ... Rs. 1,42,15,090.00 1995-96 ... Rs. 62,42,389.00

The assessee claimed exemption on the ground that the related turnovers represent subsequent sale of goods du ring its movement inter-State. The disallowance of the claims of exemptions was on the ground that the disputed turnovers relate to execution of works contract, which is a deemed sale taxable under section 5(1)(iv) read with section 5C of the Kerala General Sales Tax Act, 1963 (herein-after referred to as "the KGST A ct").

The assessee was receiving work orders from the Cominco Binani Zinc Limited (CBZL) for the supply and erection of electrical equipments. The work orders were split into two; one for design, engineering, manufacturing, testing and supply of equipments and materials and the other for erection and commissioning of the equipments. The first order is characterised as "supply order" and the second one as "service order". According to the assessee, pursuant to the supply order, the assessee in turn placed orders with various manufacturers outside the State for manufacture of the item according to the design and specification of the purchaser. It is also specifically provided in the supply order that notwithstanding the inspection test conducted at the suppliers works from time to time, the goods under the order shall not be despatched unless they have been finally inspected by FEDO/CBZL or inspection waived and despatch specifically authorised in writing. Accordingly, the goods covered by the supply order have been manufactured according to the design and specification of the purchaser in places outside Kerala and inspected by the purchaser before despatch and as such the said goods were appropriated to the contract at place outside Kerala.

The assessee effected sale of these goods to the purchasers while the goods were in movement as provided in section 3(b) of the CST Act. These sales effected by the assessee under section 3(b) of the CST Act while the goods were in movement are exempt from levy of any tax under the CST Act in terms of section 6(2) of the CST Act. The goods directly despatched to the purchaser as aforesaid and sale of which was effected by transfer of documents of title to the goods during their movement from one State to another are taken delivery by the purchaser and taken into their stores. Thereafter, these goods were issued to the assessee for erection from the stores of the purchaser in terms of the work order. According to the assessee, the sale of goods effected by the assessee during its movement from one State to another is exempt from imposition of any tax as per section 6(2) of the CST Act. Since it is a transaction in the course of inter-State trade and commerce, the same is outside the purview of any imposition under the KGST Act. Accordingly, the assessee claimed exemption on a turnover of Rs. 29,63,052 during the y