STATE OF KARNATAKA Vs. BACARDI MARTINI INDIA

JUDGEMENT

(1.) The revenue has come up in this Revision Petition being aggrieved by the order passed by the Karnataka Appellate Tribunal in S.T.A. Nos.1706/2004 and S.T.A.No.39/2005 dt.29.3.2007 raising the following substantial questions of law:

(2.) We have heard the learned counsel for the parties.

(3.) Before considering the arguments advanced by the learned appearing for both the parties, we feel it appropriate to narrate the background of this case: The assessee is a Public Limited company registered as a dealer under the provisions of the Karnataka Sales Tax Act.1957 and The Central Sales Tax Act. The assessee is engaged in the manufacture and sale of Indian made foreign liquor. For the assessment year 1999-2000 the assessee claimed a turnover of Rs.18,24,545/- and for the assessment year 2000-2001 the turnover of the assessee in respect of the sales made to Air India was Rs.22,78,993/-.According to the assessee, the sale of IMFL by it to Air India is in the course of export and out of territory of India and claimed that it is not liable to collect the central sales tax from Air India as the goods sold by it is for the purpose of exports. The revenue did not accept the arguments advanced by the asseesee. According to the revenue, the sale made by the Assesse to Air India as a inter-state sales and it attracts Central Sales Tax Act. Accordingly, the tax was levied.