1993 (3) TMI 303 - SC - VAT and Sales Tax

Whether the disputed turnovers for the relevant periods were the turnovers of export sales and as such were not liable to sales tax under the Tamil Nadu General Sales Tax Act 1959? Held that - Appeal dismissed. The sales in question must be held to be liable to sales tax because it must be deemed that there was a local sale by the appellants to the exporting houses in order to enable the exporting houses to effect a sale in their own right in favour of the foreign buyers.

Summary

The appellant claimed exemption from sales tax on disputed turnovers as export sales. Appellate authority granted exemption, but Board of Revenue reversed decision, stating appellant sold goods to local exporters who then exported them. High Court upheld Board's decision, ruling sales were liable to sales tax. Supreme Court dismissed appeal, agreeing with High Court's reasoning.