Consignment Sales upheld under CST

The CESTAT, exercising jurisdiction in a Central Sales Tax appeal, held that transactions undertaken by the assessee after 1 August 1995 constituted genuine consignment sales and not inter-State sales. 

The Tribunal found that the Tamil Nadu Sales Tax Appellate Tribunal had wrongly relied upon materials pertaining to an earlier period and had proceeded on presumptions rather than evidence. 

Consequently, the restoration of CST demand and enhanced penalty by the Sales Tax Appellate Tribunal was set aside, while the reduced penalty sustained by the first appellate authority was maintained.