YELETI NARAYANA MURTY Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS tax revision case is directed against the order of the Sales Tax Appellate Tribunal given on 31st July, 1965.

(2.) THE relevant facts are that the assessee is Messrs Yeleti Narayana Murty and Co. , Kakinada, dealer in paddy, rice, green gram etc. The assessment year is 1955-56. The assessee at the end of the year filed a return on 30th April, 1956, declaring its gross and net turnovers at Rs. 20,21,899-8-1 and Rs. 2,22,490-3-4 claiming exemption on a turnover of Rs. 17,99,409-4-4. We are, however, concerned in this revision is regard to only two items of exemption : (1) Rs. 40,393-6-0 exemption in regard to which is claimed on the ground that they are inter-State sales; and (2) Rs. 2,30,880-11-1 which is said to relate to sales of rice in the course of export to outside the Indian territory. The first of these items consists of the following two items : (1) A turnover of Rs. 16,672-2-0 which related to transactions effected on 7th July, 1955, prior to 6th June, 1955, when the Sales Tax Laws Validation Act of 1956 was in force; and (2) a turnover or Rs. 23,631-4-0 which relates to transactions held on 22nd February, 1956.

(3.) BEFORE we consider the legal aspect, it is necessary to state the undisputed facts. It is common ground that the rice covered by these transactions was sent outside the State of Andhra Pradesh. But the sales were f. o. r. Kakinada town. The amounts were realised in full from the local dealers. The railway receipts were endorsed and were handed over to the local dealers by the seller. It is in this context that we have to see whether these transactions fall within the ambit of the explanation. Article 286 in so far as it is relevant reads as under : " (1) No law of a State shall impose or authorise the imposition of, a tax on the sale or purchase of goods where such sale or purchase takes place - (a) outside the State; or (b) in the course of the import of the goods into, or export of the goods out of, the territory of India.