STATE OF KERALA Vs. EXCEL TIMBERS PRIVATE LIMITED

JUDGEMENT

(1.) The issues arising in all the revisions are with respect to the exemption declined of High Sea Sales claimed, on the ground that the same was not proved. The revisions also are with respect to the assessment years 2005-06 and 2006-07; in the later year, both the assessment and penalty proceedings being the subject matter. In the first year, the Tribunal first remanded the matter and later in a rectification application, allowed the claim of exemption. O.T.Rev.No.140/2017 challenges the order in the rectification application. The other two revisions challenge orders of the Tribunal which followed the order in the rectification application.

(2.) We first look at O.T.Rev.No.140/2017. The questions of law are re-framed as follows:

(3.) The issue raised is confined to the High Sea Sales; the facts and legal grounds being similar in all the revisions. The assessee in its return for the year 2005-06, claimed High Sea Sales to the extent of Rs.4,27,57,662/-. The goods imported by the assessee arrived at the Ports at Mangalore, Tuticorin and Cochin. The goods are said to have been sold prior to the goods passing the Customs frontiers, to three traders in Chittor, Coimbatore and Mangalore. The Tribunal in its first order in appeal found that the High Sea Sales are covered by agreements which have been acted upon, as is clear from the consideration received from the purchasers. It was found that, since the assessee had only three days to file their objections, there was violation of principles of natural justice, which was the ground on which the issue was remanded. Later, the rectification application was allowed finding that the agreements produced and the consideration received clearly indicated that the exemption on High Sea Sales had to be allowed.