1954 (3) TMI 50

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..... . The Appellate Tribunal relying on the decision of the Supreme Court in State of Travancore-Cochin v. Bombay Co. Ltd.(1), allowed the exemption on the ground that the "sale for export involves a series of integrated activities commencing from the agreement of sale with the foreign buyer and ending with the delivery of the goods to a common carrier, for transport out of the country by land or sea". On this reasoning, they held that the purchase of groundnut after 26th January, 1950, was necessarily in a chain of such integrated activities which was contemplated by the Supreme Court in the aforesaid decision. The "purchase" in this case before the Supreme Court was held to be the occasion for the export or the import of goods out of or into .....

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..... ed as done in the course of the latter. The same reasoning (1) [1952] 3 S.T.C. 434. (2) [1953] 4 S.T.C. 205. applies to the first sale after import which is a distinct local transaction effected after the importation of the goods into the country has been completed, and having no integral relationship with it. Any attempt, therefore, to invoke the authority of the previous decision in support of the suggested extension of the protection clause (1)(b) to the last purchase for the purpose of export and the first sale after import on the ground of integrated activities must fail." In view of this clear pronouncement by the highest authority the assessee is not entitled to exemption in respect of the purchase price of the groundnut. It was, ho .....

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..... logous provisions relating to cashewnuts were considered. Under rule 4, clause 2(b), in the case of cashewnuts also, the turnover is to be calculated on the amount for which the goods were bought by the dealer. Adverting to this aspect of the matter, at page 209 of the report, it was observed, that under Section 3(4) of the Act the turnover is to be determined in accordance with the rules that might be prescribed, and rule 4 of the rules framed under the Act prescribes that in the case of certain goods including cashew and its kernel the gross turnover of a dealer is the amount for which the goods were bought by him and in all the other cases, the amount for which the goods were sold by him. (1) [1953] 4 S.T.C. 205. In view of the language .....

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