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TMI Blog2025 (3) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... 29.01.2021 whereby his STA No. 674/2016 has been negatived thereby upholding the rejection of his rectification application qua the appeal order dated 22.06.2016. 2. Petition is structured on the following questions of law: "i) Whether, in the facts and circumstances of the case of the petitioner, the Karnataka Appellate Tribunal was in error in having raised an issue, which had not been raised by the lower authorities and also not argued at the time of final hearing by both the sides, and answered the same against the petitioner? ii) Whether, in the facts and circumstances of the case of the petitioner, the Karnataka Appellate Tribunal was in error in having held that the petitioner is not entitled for exemption of turnover under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concluded; the transaction in question demonstrably fits into Sec. 5 (3) of the Act r/w Rule 12 (10) (a) of CST (Registration and Turnover) Rules 1957 coupled with Form-H; therefore tax exemption ought to have been granted to the sale of pharmaceuticals which were intended to be exported. Learned AGA appearing for the Revenue per contra opposes the petition contending that the questions framed cannot be termed as questions of law at all; concurrent findings of the authorities on the fact matrix as to the transaction in question was toward intended export, cannot be a subject matter of deeper examination at the hands of revisional court; even otherwise, no benefit can be granted to the petitioner in view of a Co-ordinate Bench decision in A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chase order between 'B' and 'C'; further the sale transaction of 'A' is intended to effectuate or has thick nexus with the transaction between 'B' and 'C'. In other words, if the transaction between 'A' and 'B' has nothing to do with the transaction between 'B' and 'C', sub-section (3) is not attracted. Added, this sub-section r/w Rule 12 (10) (a) of the Rules coupled with Form-H prescribes the nature of evidentiary material to vouch transactions of the kind. To put it succinctly, mandate of law in this regard is both substantive & evidentiary. It hardly needs to be stated that the provisions of tax law should be literally construed, subject to all just exceptions. 6. Sub-section (3) of Sec.5 of the Act r/w Rule 12 (10) (a) of the subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the privilege of exemption can be granted. We see no ground on which the revisional order can therefore be interfered with. 4. At this stage, the appellants' learned counsel submitted that the appellants did not appear before the revisional authority, that a default had taken place and that they should be afforded an opportunity of appearing before that authority and establishing their case. This request has been opposed by the learned Government Advocate and rightly so. The principle that applies to these proceedings is that production of documents and evidence is timely and is also required to be done at the requisite stage and if this is not done then the law proceeds on the assumption that such evidence is not in existent or not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as filed form H and other documents in support of his claim and the order of the assessing authority without insisting those documents and by considering the production of agreement with foreign buyers, is unfair and arbitrary and is bad in law. This court finds considerable force in such argument advanced on the side of the petitioner. What is required on the part of the petitioner is to prove the factum of the transaction and once he is able to do so with sufficient and satisfactory documents, the value of the same is exempted form tax liability and no rule lays it mandatory to produce the agreement with foreign buyers. That being so, the failure on the part of the assessing authority to consider the documents already produced by the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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