ALLEPPEY COMPANY LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) ARISING against the order dt. 15/02/2008 in 206 of 2006 in T. A. No. 205 of 2006 of S. T. A. T. Additional Bench, Emakulam. The question raised in the connected revision cases filed by the very same Company is whether the Sales Tax Appellate Tribunal was justified in holding that the petitioner is liable to pay purchase tax under Section 5Aof the Kerala General Sales Tax Act (hereinafter referred to as the Act for short) on the purchases of tags and labels from exempted dealers which were attached to coir products exported outside India.

(2.) WE have heard learned counsel appearing for the revision petitioner and learned Government Pleader for the respondent.

(3.) AFTER hearing both sides, we notice that taxable turn over under Section 2(xxv) of the KGST Act excludes export turnover which takes in deemed export turnover falling under Section 5(3) of the CST Act. Section 5(3) of the CST Act grants exemption on the last sale or purchase of any goods preceding the sale or purchase occasioning the export of those goods out of the territory of India. In the decision of the Supreme Court above referred the Honourable Court held that when a commodity purchased is exported though not in the same form but without change of identity, the same falls within the scope of Section 5(3) of the CST Act. What is stated in Section 5(3) is that sale or purchase should be for sale which should occasion export of the commodity purchased. In this case, admittedly tags and labels were printed by the supplier-printing press in terms of the petitioner's orders, which were in conformity with export orders. So much so, the commodity even at the time of printing or manufacture is earmarked for export after purchase. Admittedly the petitioner attached the tags and labels to the products exported. Therefore the commodity purchased was for export by attachment to the coir products without any change whatsoever and so much so, the decision of the Supreme Court squarely applies to the facts of this case.