STATE OF ANDHRA PRADESH Vs. STANDARD PACKINGS

JUDGEMENT

(1.) The assessee is a manufacturer of jute bags. The bags were sold to mine owners for export of barytes powder. Pursuant to the order of supply the exporter wanted the export the barytes powder in bags to a company in Kuwait. The assessee claimed exemption under section 5(3) of the Central Sales Tax Act, 1956 (for short "the Act"). The assessing authority rejected the contention. The Appellate Tribunal accepted the contention and set aside the order of assessment on 10/10/1984, in appeal, T.A. No. 22 of 1984.

(2.) The question that falls for consideration in this tax revision case is whether the sale of gunny bags of the assessee to another dealer, who use them as containers for export of certain goods to a foreign country, shall be deemed to be an export sale within the meaning of section 5 of the Act. The assessment relates to the assessment year 1981-82. Section 5(3) of the Act, as amended and applicable for the assessment year 1981-82, reads as follows :

(3.) To invoke the said sub-section, 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 should be for the purposes of : (1) export and (2) the sale must have been for the purpose of complying with the agreement or order.