Section 6A of the Central Sales Tax Act establishes that declarations regarding stock transfers can be liable for reassessment under State provisions, while questioning the conclusiveness of such orders and the jurisdiction for reopening assessments.

1 Leave granted in S.L.P. (Civil) No. 5579 of 2001.

2 Interpretation of S.6A of the Central Sales Tax Act, 1956 is involved in these appeals and the writ petition. The appeals arise out of judgments and orders dated 12.3.1999 passed by the Tamil Nadu Sales Tax Appellate Tribunal in T.A. Nos. 353, 456 and 457 of 1997 and 47 of 1998; dated 13.11.2000 in STA No. 459 of 1999; dated 14.11.1997 in Appeal No. 383 of 1996; and dated 2.12.1997 in Tax Case (Revision) No. 1096 of 1990 passed by the High Court of Madras.

3 The writ petition under Art.32 was filed by the Petitioner inter alia for declaring that S.9(2) of the Central Sales Tax Act, 1956 designating the authorities of the movement State to adjudicate upon the situs of sales and character of a transaction in the course of an inter State sale, whether as falling under S.3 or under S.4 of the , is arbitrary, unworkable and ultra vires Art.14, 19(1)(g) and Chapter XIII of the Constitution of India, in matters involving elements of transactions taking place in more than one State.

4 BACKGROUND FACTS:
Civil Appeal No. 976-979 of 2001
The appellants herein are engaged in manufacture of commercial vehicles. They have their factories at Bhandara in the State of Maharashtra and Alwar in the State of Rajasthan for manufacture of popular models of passenger chassis. They are, inter alia, registered under Tamil Nadu General Sales Tax Act, 1959 (hereinafter called for the sake of brevity as "the State Act") as also the Central Sales Tax Act, 1956 (hereinafter referred to as "the Central Act". They are registered as dealers in the Office of Assistant Commissioner (Central Assessment Circle-III), the third respondent herein, under both the Acts.

5 Indisputably, the appellants have several regional offices throughout the country wherewith Regional Sales Offices are attached for the purpose of receiving, warehousing and selling the vehicles produced by the appellants. The appellants contend that they transfer both goods vehicle and passenger chassis to their different Regional Sales Offices for marketing the products which in turn are registered under the Sales Tax laws governing the State in Question. The stock of vehicles are transferred to the Regional Sales Offices under the cover of stock transfer invoices, excise gate pass, and entrusted to the transport contractors for movement and delivery thereof where upon transfer of such vehicles local sales tax are collected and paid by the different Regional Sales Offices. The appellants herein upon transfer of such purported stocks of vehicles filled up forms in terms of S.6A of the Central Act, the original whereof having been filed before the assessing authority of the State of Tamil Nadu, an enquiry was made and / or caused to be made pursuant whereto and in furtherance whereof the claim of the appellants to the effect that by reason of such transactions transfer of stock of goods had taken effect as contra-distinguished from inter State sale was accepted. On or about 29.11.1990, the assessing authority upon completion of the order of original assessment under the Central Act allowed transfer of stocks of the motor vehicle chassis and other automobile parts to the branches stating:
"The dealers have got 26 branch sales depots in other States. They have despatched their, products - chassis, spare parts etc., to their own sales depots in other States for sales and the goods involved in the stock transfer have moved from Tamil Nadu to other State as "stock transfer", i.e., the movement was occasioned by reason of branch transfer and not by reason of sale. The despatches are supported by stock transfer invoices, transport details and Form F. These records have been verified with the exemption claimed."

6 An order of assessment for the year 1987-88 dated 28.8.1991 was passed finding:
"The dealers have filed detailed statement of stock transfer of vehicles to their outside State Regional Sales Offices and Spares to their warehouses. The statemen