9911796707
TMI Blog2004 (4) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... sment year on sale of haldi worth Rs. 2,24,579 on the basis of export to Nepal. The assessing authority accepted the books of account of the dealer but rejected the claim of exemption in respect of the aforesaid turnover. However, the first appellate authority and the Tribunal allowed the claim of the dealer-opposite party. Challenging the orders of the Tribunal present revisions have been filed by the Commissioner of Trade Tax under section 11 of the U.P. Trade Tax Act, 1948. Heard learned counsel for the parties and perused the record. Learned Standing Counsel submitted that the Tribunal has committed an illegality in treating the sales in the course of export. The traders from Nepal came to Varanasi and purchased the goods from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. The Supreme Court has considered this matter in number of cases including in Ben Gorm Nilgiri Plantations Co. v. Sales Tax Officer [1964] 15 STC 753. It has laid down following principles of law on page 759: A sale in the course of export predicates a connection between the sale and export, the two activities being so integrated that the connection between the two cannot be voluntarily interrupted, without a breach of the contract or the compulsion arising from the nature of the transaction. In this sense to constitute a sale in the course of export it may be said that there must be an intention on the part of both the buyer and the seller to export, there must be an obligation to export, and there must be an actual export. The obli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause etymologically 'in the course of export' contemplates an integral relation or bond between the sale and the export. Both the learned counsel for the parties have placed reliance upon the aforesaid paragraph of the judgment. Learned counsel for the dealer-opposite party has placed further reliance upon the Full Bench judgment of this court given in the case of National Carbon Co. v. Commissioner of Sales Tax, U.P. [1969] 23 STC 388. Relevant paragraph(1) is quoted below: This passage has been relied by learned counsel for both parties. The learned counsel for assessee emphasised on the observation, 'such a transaction without more cannot be regarded as one in the course of export' and urged the ratio of this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitution, sales and purchases which themselves occasion the export or import of the goods as the case may be out of or into the territory of India come within the exemption. In that case this court further observed that a sale by export involves a series of integrated activities commencing from the agreement of sale with a foreign buyer and ending with the delivery of the goods to a common carrier for transport out of the country by land or sea. Such a sale cannot be dissociated from the export without which it cannot be effectuated and the sale and the resultant export form parts of a single transaction. Of these two integrated activities which together constitute an export sale, whichever first occurs can well be regarded as taking plac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of this court in the case of Commissioner of Sales Tax v. Ganeshi Lal and Sons [1982] 49 STC 253; [1981] UPTC 128 and has held that from the language of section 5 of the Central Sales Tax Act, 1956, it is clear that it is a sale in the course of export only which is exempt, and not sale for export. When can a sale be said to be in the course of export or for export depends on the variety of circumstances. The export means taking out something out of the country across the customs barrier. The word course means sequence , process or a pattern in which anything moves . The sequence or movement should be preceded by sale and must result in export to attract section 5. The sale, the movement and the export must result in crossing o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
