9911796707
TMI Blog1995 (8) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... purchases mica within the State of Andhra Pradesh and exports the same. During the assessment years in question the assessee claimed exemption under sub-section (3) of section 5 of the Central Sales Tax Act, 1956 ("the Central Act", for short) read with section 38 of the Act in respect of the turnover relating to its purchases of mica which was exported by it. The Commercial Tax Officer concerned exempted the turnover relating to the purchases of mica made by the assessee within the State after the agreements or orders for or in relation to the export of the same, but rejected the claim for exemption in respect of the turnover relating to the purchases of mica made by the assessee without any agreement or order for or in relation to its e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal. The language of sub-section (3) of section 5 of the Central Act does not permit any other conclusion than that reached by the Appellate Tribunal. The said sub-section is as follows: "5(3) Notwithstanding anything contained in sub-section (1), the last sale or purchase of any goods preceding the sale or purchase occasioning the export of those goods out of the territory of India shall also be deemed to be in the course of such export, if such last sale or purchase took place after, and was for the purpose of complying with, the agreement or order for or in relation to such export." The assessee does not dispute the fact that the disallowed turnovers relate to the last purchases of mica made by it within the State even before any agr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h penultimate sale must take place (i.e., become complete) after the agreement or order under which the goods are to be exported and (b) it must be for the purpose of complying with such agreement or order and it is only then that such penultimate sale is deemed to be a sale in the course of export." On the question whether the agreement referred to in section 5(3) means only agreement with the foreign buyer or would include any binding or enforceable agreement to export with a local party to implement which penultimate sale should have taken place, the Supreme Court held: ".......As a matter of pure construction it appears to us clear, therefore, that by necessary implication the expression 'the agreement' occurring in the relevant phr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 5(3)." On the facts found and admitted we do not find therefore any substance in this contention. In T.R.C. Nos. 70 and 52 of 1989 the assessee questioned the finding of the Tribunal upholding the tax on the turnover relating to the last purchase of mica within the State by the assessee which was transferred out of the State to Giridih in Bihar during the two assessment years 1976-77 and 1977-78. The contention of the assessee is that mica was only transferred from this State to Bihar and it continued to be its property. But when that mica goes out of the State the purchases in respect of that mica become the last purchases by the assessee within the State at the close of the relevant assessment years and therefore the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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