STATE OF ANDHRA PRADESH Vs. INTERNATIONAL PACKAGING INDUSTRY

JUDGEMENT

(1.) The only point in this revision filed by the State is, whether the respondent is entitled to the exemption from tax under section 5 of the Central Sales Tax Act, 1956, the sales effected by it being "sales in the course of export".

(2.) The brief facts of the case are as follows : The respondent is a manufacture of hessian/gunny bags. It made sales of the gunny bags to (i) M/s. Tiffin Barytes Asbestos and Paints Ltd., (ii) M/s. Vijayalakshmi Minerals Trading Company and (iii) A.P. Mining Corporation Limited (hereinafter referred to as "the dealers"). The gunny bags purchased were used by the dealers for purpose of packing the barytes powder being exported to a foreign buyer. As per the policy of the Central Government the barytes packed in the hessian gunny bags were sold to and channelised through the Minerals and Metals Trading Corporation for purpose of exporting the same to the foreign buyer. The claim of the respondent is that the sales effected by it were in the course of export being the last sale preceding the sale occasioning the export of barytes packed in the goods sold out of the territory of India. The assessing authority rejected the claim and subjected the sales of tax. The respondent thereupon made an unsuccessful appeal before the Appellate Deputy Commissioner. Thereafter, it moved the Sales Tax Appellate Tribunal. The Tribunal upheld the claim of the respondent and found the sales to be covered by section 5(3) of the Central Sales Tax Act. Hence this revision by the State.

(3.) Before entering into the appreciation of facts, it is useful to notice section 5(3) of the Central Sales Tax, under which the benefit of exemption is claimed. It is as under :