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TMI Blog2017 (6) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... rve Bank of India for forwarding to the offices of the Joint Chief Controller of Imports and Exports on certain amount of premium proportionate to balance of C.I.F. value constitute a sale of goods within the meaning and for the purpose of Bombay Sales Tax and whether the amount of premium is exigible to sales tax? - Held that: - the issue is no longer res-integra and is decided in the case of Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tender of an import licenses called REP licenses/Exim Scrips by the holder thereof after discontinuance of Import Export Policy since 1.3.1992 to the branches of the State Bank of India designated for the purpose at the instance of Reserve Bank of India for forwarding to the offices of the Joint Chief Controller of Imports and Exports on certain amount of premium proportionate to balance of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Tax) Act, 1941 (for brevity the Act ) would be liable to levy of purchase tax under Section 5 (6a) of the Act for accepting the Exim scripts (Export Import Licence on payment of premium of 20 per cent of the face value of the scrips in compliance with the direction contained in the letter of Reserve Bank of India (RBI) dated 1831992. The authorities of the Revenue as well as the Taxation Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. In this process, as and when the goods are presented, the replenishment licence or Exim scrip is cancelled and ceases to be a marketable instrument. It becomes a scrap of paper without any innate market value. SBI, when it took the said instruments as an agent of RBI did not hold or purchase any goods. It was merely acting as per the directions of RBI, as its agent and as a participant in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or. Further, SBI is an agent of RBI, the principal. The Exim scrips or replenishment licences were not goods which were purchased by them. The intent and purpose was not to purchase the replenishment licences because the scheme was to extinguish the right granted by issue of replenishment licences. The ownership in the goods was never transferred or assigned to SBI. 4 As the issue involv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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