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TMI Blog1993 (10) TMI 330X X X X Extracts X X X X X X X X Extracts X X X X ..... f lemon-grass oil sold to registered dealers in the State and covered by form 25 declaration. 2.. A turnover of Rs. 15,41,067 being purchases made in Karnataka State and used for export, and 3. Rs. 10,77,982 being purchase turnover of 19,308.200 kilograms of lemongrass oil exported. The assessing authority completed the assessment denying the claims under all the heads. In respect of local sales the assessing authority fixed the purchase value by deducting 2 per cent of the gross profit from the sale value. In respect of the claim for exemption relating to purchase from Karnataka State, the exemption was limited to Rs. 15,27,067 which is the turnover of lemon-grass oil transported to Kerala. Regarding the third claim the assessing a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate Tribunal modified the order of the appellate authority and held that the exemption is allowable only for purchases effected with effect from April 1, 1976, the date from which subsection (3) of section 5 of the Central Sales Tax Act has come into force. The Tribunal directed that only those purchases and sales effected on or after April 1, 1976, will be treated as purchase or sale in the course of export. This order of the Appellate Tribunal is assailed by the assessee in this revision. 2.. Heard counsel for the petitioner and the Government Pleader. 3.. The questions of law raised for decision by this Court are formulated in paragraph 6 of the revision memorandum. They are: 1.. Whether, on the facts and in the circumstances o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he accounts for the reason that the trading results showed a gross loss. It is for this reason that the authority observed that there is no justification in deducting 2 per cent of the gross profit from the sale value to arrive at the purchase value. The Tribunal has considered this aspect of the matter and held that the rate adopted by the assessing authority seems to be reasonable in the absence of proper books of accounts. The assessing authority has referred to the failure on the part of the assessee to maintain separate accounts for purchase of lemon-grass oil sold locally and that sold inter-State and exported. In the circumstances the assessing authority was left with no choice but to determine the purchase turnover of lemongrass oil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the export order. The discrepancy between the citral content as per the export order and the oil actually exported was also referred to by the assessing authority. The appellate authority, after referring to the various contracts entered into by the assessee for export of lemon-grass oil, held that the assessee is eligible for exemption claimed under section 5(3) of the Central Sales Tax Act. The Tribunal while agreeing with this view of the appellate authority limited the benefit of the exemption to the purchases effected from April 1, 1976, the date from which sub-section (3) of section 5 of the Central Sales Tax Act has come into force. The grievance of revision-petitioner is that the Tribunal is not justified in limiting the exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contracts entered into with the foreign buyer were produced. The assessing authority denied the benefits of the exemption granted under sub-section (3) of section 5 for the reason that the subsection had come into operation only with effect from April 1, 1976. In respect of one of the contracts which was entered into on January 15, 1976, the assessee had started purchase from March 16, 1976. Still the benefits were denied for the reason that the purchase must invariably be effected after April 1, 1976, in order to get the reliefs under that sub-section. The assessee having failed to prove that the entire quantity inspected on April 5, 1976, for export was purchased between April 1, 1976 and April 5, 1976, the benefits of the sub-section we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hase took place after and was for the purpose of complying with the agreement or order for or in relation to export. Since the sub-section was introduced with effect from April 1, 1976, the last sale or purchase contemplated under sub-section (3) can only be the last sale or purchase which took place on and after April 1, 1976. The Tribunal was therefore right in holding that only those purchases and sales effected on and after April 1, 1976, will be treated as purchases or sales in the course of export. The assessee was rightly held entitled for exemption in respect of purchases of lemon-grass oil effected on or after April 1, 1976. No error was committed by the Tribunal in holding so. For the reasons aforementioned the revision is found ..... X X X X Extracts X X X X X X X X Extracts X X X X
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