1982 (12) TMI 153 - HC - VAT and Sales Tax

Summary

Issues:
1. Classification of stainless steel wires under the Tamil Nadu General Sales Tax Act, 1959.
2. Determination of sales as inter-State sales or sales in the course of export under the Central Sales Tax Act, 1956.

Analysis:
1. The judgment addressed the issue of classification of stainless steel wires under the Tamil Nadu General Sales Tax Act, 1959. The appellant contended whether the wires fell under item 109 of the First Schedule or item 4(xv) of the Second Schedule. The court determined that as the wires were stainless steel, they qualified as "articles made of stainless steel" under item 109 of the First Schedule. Consequently, the court dismissed the appeal as item 4(xv) of the Second Schedule did not apply to the case.

2. The judgment also dealt with the determination of sales as inter-State sales or sales in the course of export under the Central Sales Tax Act, 1956. The petitioner, a manufacturer of sandalwood oil, sold oil to a dealer who exported it to Russia. Initially, the Appellate Assistant Commissioner ruled the sales were in the course of export and exempt from tax under the Act. However, after a subsequent Supreme Court decision, the Commercial Tax Officer deemed the sales as inter-State sales. The court held that once a final order was issued by the Appellate Assistant Commissioner, it could not be disregarded by the Commercial Tax Officer based on a subsequent decision. The court emphasized that the finality of the appellate order must be respected unless revised through proper channels. Therefore, the court allowed the tax revision case and directed the Commercial Tax Officer to implement the directions from the appellate order dated 23rd March, 1974.