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TMI Blog1954 (3) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... and sell for export under the Cotton Textiles (Export Control) Order, 1949. Instead of himself selling for export, the assessee sold it to another and that another exported the goods outside India. The assessee had no export licence. In view of these facts, the Tribunal held that the asses- see was not within the exemption in Article 286, sub-section (1)(b), of the Constitution. The correctness of this is the first point which is raised on behalf of the assessee by Mr. Kuppuswami, learned counsel for the assessee. In view of the two recent decisions of the Supreme Court, we think that the conclusion reached by the Tribunal is correct and the assessee is not entitled to the exemption. In the first Travancore case, State of Travancore-Cochin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 S.T.C. 205. The conclusions were summed up at page 217 in the form of three propositions: "(i) Sales by export and purchases by import fall within the exemption under Article 286(1)(b). This was held in the previous decision. (ii) Purchases in the State by the exporter for the purpose of export as well as sales in the State by the importer after the goods have crossed the customs frontier are not within the exemption. (iii) Sales in the State by the exporter or importer by transfer of shipping documents while the goods are beyond the customs frontier are within the exemption, assuming that the State power of taxation extends to such transactions." In view of these observations it is clear that under Article 286(1)(b) of the Constitution, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 5 of the Act. It is no doubt true that in September, 1951, a definition of place of business was added in the Madras General Sales Tax Rules but that definition does not apply to the present case. Form I (Application for Licence) clearly states: "Principal place of business and also place of business of each of the branches", as each of them would require a separate licence. Unless therefore it is established that there is a separate branch of the business, he could not be required to obtain another licence for that business. Under the original licence which he obtained for the business at Pasumalai, he would undoubtedly be entitled to the lower rate of tax under Section 5 of the Act. If a person through his agents makes purchases fro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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