SAROJA MILLS LIMITED Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE only item of dispute in this tax revision case related to a turnover of Rs. 9, 57, 094. In respect of this turnover, the assessees claimed that it was an export sale and, therefore, exempt from payment of sales tax. On a verification of the records it was found that the assessee mills sold the goods to a local export house who in turn exported the same. Thus the assessee are not the exporters themselves. But the goods were sold to other exporters within the Madras State for the purpose of export. THE contract of sale with the foreign purchaser was also only with the exporters and not with the mills. THE mills appear to have despatched the goods direct to the foreigners on instructions of the purchaser who are the exporters within the State. In view of the decision reported in Mr. Serajuddin vs. State of Orissa and Binani Bros. vs. Union of India the transaction could not be said to be an export sale by the assessees and the export sale was only by the purchasers of the assessee. THE turnover is, therefore, liable to be included in the taxable turnover. THE revision petition accordingly fails and it is dismissed with costs. Counsel's fee Rs. 250/- ( Rs. Two hundred and fifty only ).