9911796707
TMI Blog1976 (9) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 (two) Superfine tanned 11/12 Rm sheep skins. 25/35/40 @ Sh. 19/6 Pure red hairs. Export duty: Single tonnage. Your a/c. Guaranteed free from adulteration. Terms: The above price/prices is/are CIF/Far Eastern Ports less 3 1/2 per cent discount. Brokerage: 1 1/2 per cent N.P. per lb. Shipment: Within 2 months. Property in the goods passes after shipment: Payment: Against presentation of documents after shipment 90 days D/P. on continent. Note: Shipment if effected by us shall be at your expense but it is understood that in effecting shipment, we are acting strictly as your shipping agents. It is understood that the terms and conditions contained in official contract No. 6 issued by Leather Importers Factors and Merchants Association of L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of Rs. 37,669.18 is a taxable turnover. We are of the opinion that this contention is not correct. Section 5 of the Central Sales Tax Act, 1956, deals with the question when a sale or purchase of goods is said to take place in the course of import or export. Sub-section (1) of section 5 provides that a sale or purchase of goods shall be deemed to take place in the course of export of the goods out of the territory of India only if the sale or purchase either occasions such export or is effected by a transfer of documents of title to the goods after the goods have crossed the customs frontiers of India. Thus, section 5(1) deals with two alternative cases: (i) where the sale or purchase occasions the export itself; and (ii) where the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... review our order* dated 23rd September, 1976. That order was passed on a revision petition preferred by the State under section 38 of the Tamil Nadu Act 1 of 1959 against the order of the Sales Tax Appellate Tribunal dated 29th November, 1971. That was concerned with a turnover of Rs. 37,669.18 representing the sales effected by the respondent herein in favour of one V. Srinivas and Company, Madras. The contract that was entered into between the parties as extracted by the Tribunal in its order which, in turn, we have extracted in our order dated 23rd September, 1976, is as follows: "We have pleasure in accepting your offer to deliver the following goods in Far Eastern Ports at your account and risk. No. of bales/ Description Agg. wt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the sales constituted sales in the course of export and, therefore, the turnover was not liable to be included in the total turnover of the See page 335 supra. assessee. While dealing so, we also held that the decision of the Supreme Court in Mod. Serajuddin v. State of Orissa[1975] 36 S.T.C. 136 (S.C.). did not touch the second limb of section 5(1), namely, where the sale or purchase is effected by transfer of documents of title to the goods after the goods had crossed the customs frontiers of India. For coming to this conclusion, we took the expression "customs frontiers" to mean the actual "customs barrier" and not the technical expression of "customs frontiers". However in this review petition filed by the State, it is contended that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be included in the taxable turnover. There is no evidence whatever to show that the property in the goods in the present case passed after the goods crossed the customs frontiers of India, as construed by the Supreme Court in the decision(2) referred to above. Once the assessee was not able to prove that the property in the goods passed after the goods crossed the customs frontiers of India, it must necessarily follow that the turnover was liable to be included in the taxable turnover. Accordingly we allow T. C. No. 120 of 1972 and hold that the turnover of Rs. 37,669.18 representing the sales effected by the respondent herein in favour of V. Srinivas Company was liable to be included in the taxable turnover. There will be no order as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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