9911796707
TMI Blog1995 (12) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... uary 25, 1981, according to the assessing officer. Hence sales to exporter of Rs. 10,33,137 was assessed. The assessing officer also examined this point and found that it was not eligible for exemption as the goods supplied by the dealers were only packaging materials and were utilised for packing of certain other materials, which were intended for export. If the privity of contract with the buyer was for supply of packing materials exemption was allowable. Hence exemption was disallowed and the sales turnover was assessed at 10 per cent. On appeal, the Appellate Assistant Commissioner, held that section 5(3) of the Central Sales Tax Act will not be applicable to the facts of this case. However, the Appellate Assistant Commissioner held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 5(3) of the Central Sales Tax Act and as such are exempt from levy of tax. The contract with the foreign buyers was not only for the goods, but also for packing materials mentioned therein, viz., polythene and jute bags and therefore they would also qualify for exemption under section 5(3) of the Central Sales Tax Act. This Court held in [1982] 51 STC 329 [Packwell Industries (P.) Ltd. v. State of Tamil Nadu] that the sale of polythene bags to the exporters who use them as containers for export of the goods to a foreign country is deemed to be an export sale within the meaning of section 5(3) of the Central Sales Tax Act. The penultimate sales took place after the agreement recorded under which the goods are to be exported. It is for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover of polythene bags and jute bags amounting to Rs. 7,21,337 for the assessment year 1979-80, especially when such sales are exempt from the levy of tax under section 5(3) of the Central Sales Tax Act. 6.. In the assessment year 1979-80 the assessee sold packing material to dealers outside the State who are exporting their materials after packing with the goods supplied by the dealers. The assessee is the manufacturer and dealer in polythene bags and gunny bags which are packing materials. The purchasers of the polythene bags are exporting barytes powder also called barium sulphate. In the bill of lading the goods is described by the shippers as goods exported is barytes powder also called barium sulphate and the packing details ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tract for export and the above finding was upheld by the High Court. On the contrary, in the present case, the very purchase order itself contemplates supply of barium sulphate, to be packed in a container of a particular specification which had been supplied by the assessee. Therefore, the abovesaid decision will not be applicable to the facts of the present case. 8.. Learned counsel appearing for the assessee relied upon a decision of this Court rendered in [1976] 104 ITR 242 (Commissioner of Income-tax v. PolyEne General Industries). According to the facts arising in that decision, the assessee sold the polythene bags manufactured by it to persons who filled these bags with tobacco and exported them to foreign countries. The claim of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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