BISMILLAH AND CO Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) A common question arises in these two T.R.Cs. The assessee, Bismillah & Company, Yemmiganur, purchased raw hides and skins and sold them to M/s. Bharat Skins Corporation, Madras. The said Madras Corporation exported them to a foreign country. The question is : Whether the purchase of raw hides and skins by the petitioner within the State attracts the tax under the provisions of the Andhra Pradesh General Sales Tax Act, 1957 ? Raw hides and skins are taxable at purchase point under item 9 of the Third Schedule to the Andhra Pradesh General Sales Tax Act. Column (3) of the Schedule says :

(2.) Section 38 of the Andhra Pradesh General Sales Tax Act, 1967 reads as follows :

(3.) Under sub-section (1) of section 5 of the Central Sales Tax Act the purchase of the goods which occasions the export is exempted. This sub-section does not further exempt the purchase by the exporter. That is done by sub-section (3) of section 5 of the Central Sales Tax Act. Sub-section (3) of section 5 of the Central Sales Tax Act extends the exemption to the purchase preceding to the purchase referred to in sub-section (1) of section 5 of the Central Sales Tax Act. In other words by virtue of sub-section (3) of section 5 of the Central Sales Tax Act, the purchase by the exporter is also exempted. But sub-section (3) of section 5 of the Central Sales Tax Act cannot be extended to the purchase of the said goods by the petitioner, since the purchase by the petitioner is not a purchase preceding the export-purchase, but is a purchase removed by one more step.