TATA TEA LTD. Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THIS appeal is by the assessee being aggrieved by the order passed by the Karnataka Appellate Tribunal, Bangalore in STA No. 464/05 dated May 30, 2006, wherein the Tribunal has confirmed the order passed by the Joint Commissioner of Commercial Taxes, Bangalore, passed under Section 21(2) of the Karnataka Sales Tax Act, 1957, dated March 10, 2005.

(2.) THE petitioner is a public limited company registered under the Companies Act, 1956. The petitioner -company, during the assessment year 1997 -98, had purchased raw coffee from grower, unregistered dealer and registered dealer. It has also purchased cured and uncured coffee. The petitioner after purchasing berries got cured the same through a private curer and exported the coffee so purchased by it to a foreign buyer based on order placed by a foreign buyer. Thereafter, the assessee filed the return claiming exemption under Section 5(3) of the Central Sales Tax Act. The return filed by the assesses/petitioner was accepted by the assessing officer.

(3.) THE revisional authority contended that there is a change in the process which amounts to manufacturing process while curing the coffee berry into coffee beans and therefore, held that the coffee purchased by the assessee and exported are different commodities and therefore, purchase tax would be attracted and the assessee is not eligible to claim exemption so far as it relates to coffee cherry purchased and exported after curing.