1962 (1) TMI 50

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..... mption in regard to a turnover of Rs. 2,11,363-8-9 holding that this amount was exigible to tax under rule 13 of the Turnover and Assessment Rules. Dissatisfied with this order of the Commercial Tax Officer, the appellant went up in appeal to the Deputy Commissioner of Commercial Taxes. The authority ruled that the transactions in question fell under Explanation to Article 286(1) of the Constitution and as such the exemption claimed in regard thereto should be allowed. In this view of the matter, he directed the assessing authority to issue a revised demand notice in that regard. The Commissioner of Commercial Taxes suo motu acting under section 29(2) of the Andhra Pradesh General Sales Tax Act, sought to revise the order of the Deputy Co .....

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..... tted that delivery was made outside the State as a direct result of the sale. The two essential conditions of the explanation sale, namely, (1) sale of goods, and (2) delivery thereof outside the State as a term of the contract, being satisfied in this case, the sales should be regarded as having taken place in the course of inter-State trade, proceeds the argument of the learned counsel fos the appellant. We do not think that we can give weight to this contention. It is true that there was a sale and that the actual delivery of the goods was taken outside the State for consumption. But the question for consideration is whether such a delivery was the direct result of the sale. In the solution of this problem, the facts as emerge from the r .....

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..... Ramakrishna Commercial Society v. State of Andhra[1961] 12 S.T.C. 31. and Mohammed Ishok v. State of Madras[1955] 6 S.T.C. 230. The ruling of this Court in T.R.C. No. 98 of 1957 called in aid by the appellant has no analogy here. In that case, the assessee put the goods on boat or rail, as the case may be, incurred incidental expenses, obtained bills of lading or railway receipts, prepared the bills in the names of the foreign buyers and handed over the bills and the bills of lading or railway receipts to the forwarding agents. The forwarding agents raised money in the bank on hundies on the basis of the bills of lading or railway receipts, as the case may be, and paid the money to the assessees. On these facts, it was found by a Bench of t .....

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