STATE OF MADRAS Vs. RALLIS INDIA LTD

JUDGEMENT

(1.) The question raised in this revision petition turns upon the interpretation of Rule 16 (2) and Rule 4 of the Madras General Sales-tax Turnover and Assessment Rules, 1939. The assessment with which we are now concerned relates to the assessment year 1949-50. The turnover in dispute is Rs. 24,239-7-0, which represents the purchase value of hides and skins, which the appellants exported to Marseilles, outside the Indian Union, after 26th January 1950. The purchases were, however, made before that date. The Tribunal upheld the claim of the assessee on the ground, that the amount is exempt from tax under Article 286(1) of the Constitution. The correctness of this is canvassed by the learned Government Pleader in this revision petition.

(2.) In the case of hides and skins, which are not tanned Section 5 (vi) of the General Sales-tax Act provides:

(3.) For these reasons we are clearly of opinion that the tribunal was right in holding that the assesses is exempt from tax in respect of the sum of RS. 24,239-7-0, which represents the purchase value of hides and skins which assessee purchased, before the coming into force of the Constitution, but which he exported after 26th January 1950. The decision of the Tribunal is confirmed and the revision petition is dismissed with costs--Rs. 250.