9911796707
TMI Blog1977 (11) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... by the respondents to their customers were not sales as defined by section 2(g) of the Central Sales Tax Act, 1956? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the impugned sales of blocks by the respondents to the Russian Embassy at New Delhi were exempt from tax under article 286(1)(b) of the Constitution of India?" As far as question No. (1) is concerned, Mr. Sanghavi, the learned Advocate for the applicant, has stated that he does not wish this question to be answered and, accordingly, we decline to answer the said question. As far as question No. (2) is concerned, the facts necessary for the determination of the same are as follows: The respondents were regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m these decision of the Tribunal. The question which we have to consider in these references is whether the sales in question by the respondents to the Russian Embassy at New Delhi are sales in the course of export and, as such, exempt under article 286(1)(b) of the Constitution of India. Clause (1) of article 286 of the Constitution of India runs as follows: "(1) No law of a State shall impose, or authorise the imposition of, a tax on the sale or purchase of goods where such sale or purchase takes place- (a) outside the State; or (b) in the course of the import of the goods into, or export of the goods out of, the territory of India." The contention of the respondents before the Tribunal was that the aforesaid sales were comple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e had to international conventions, our attention has been drawn to only one of such conventions, and that is Vienna Convention on Diplomatic Relations, which has been signed by this country. This Convention came into force on 24th April, 1964. The opening part of article 34 of the said Vienna Convention provides that a diplomatic agent shall be exempt from all dues and taxes, personal or real, national, regional or municipal. Clauses (a) to (f) of this article contain exceptions to the said exemption. Clause (a) refers to indirect taxes of a kind which are normally incorporated in the price of goods or services and such taxes are thus taken out of the aforesaid exemption. Hence, it is clear that, even according to this Convention, the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actually was even apart from the notification. This view appears to us erroneous. The notification has been issued under subsection (5) of section 8 of the Central Sales Tax Act. A plain reading of subsection (5) of section 8 of that Act, as it then stood, makes it clear that but for the exemptions granted the transactions in question would be subject to the levy of tax under the Central Sales Tax Act. Moreover, as we have already pointed out, there is nothing to show that the transactions of sale such as those in question before us would be exempt from the levy of sales tax either under the statute law or by reason of any international convention. The notification cannot, therefore, be regarded as clarificatory. In the result, we answer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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