1991 (7) TMI 359 - HC - VAT and Sales Tax

Summary

Issues:
1. Taxation on purchase value of headless shrimps for export sales.
2. Determination of last purchaser for tax assessment.
3. Tax liability on consignments shipped from Cochin Port.

Analysis:

The petitioners, dealers and exporters of cycles, contested the taxation of the purchase value of headless shrimps for export sales during the assessment year 1975-76. They claimed the turnover as sales in the course of export, arguing that they were not the last purchasers in Tamil Nadu. The assessing authority maintained that the petitioners were liable for tax as they purchased the goods within the state. The Appellate Assistant Commissioner upheld the assessment, stating that the petitioners were the last purchasers based on documentary evidence. The Tribunal affirmed this decision, emphasizing the direct export by the petitioners and rejecting the claim that M/s. George Maijo was the last purchaser.

Regarding the consignments shipped from Cochin Port, the Tribunal found the petitioners to be the exporters and last purchasers for shipments from Madras Port. However, for the consignment from Cochin Port, it was unclear if the petitioners were the last purchasers in Tamil Nadu. The absence of evidence supporting the purchase of goods in Tamil Nadu led to a deduction of the tax liability related to this consignment. The Tribunal's decision was supported by the lack of evidence indicating the petitioners' status as last purchasers for the Cochin shipment.

In the final appeal, the court examined the tax assessment in detail. The argument that M/s. George Maijo had already paid tax as the last purchaser was refuted by evidence showing no tax liability for the company. The court confirmed that the petitioners were the actual exporters and last purchasers for the shipments from Madras Port. However, for the Cochin shipment, lacking evidence of purchase within Tamil Nadu, the tax liability on that consignment was removed. The court granted relief to the petitioners in line with this finding, partially accepting the tax case and providing a tax relief of Rs. 24,704.

In conclusion, the court upheld the tax assessment for most consignments based on the petitioners' status as exporters and last purchasers. However, due to insufficient evidence of purchase within Tamil Nadu for the Cochin shipment, the tax liability related to that consignment was revoked, resulting in a partial acceptance of the tax case and granting relief to the petitioners.