Supreme Court on section 5 of the Central Sales Tax Act, 195

Court :
Supreme Court

Brief :
Section 5 of the Central Sales Tax Act, 1956, read with section 5A of the Kerala General Sales Tax Act, 1963 - When is a sale or purchase of goods said to take place in course of import or export - Assessment year 1998-99 - Assessee was engaged in business of export of cashew kernels - Assessing Officer was of view that during relevant year, assessee had purchased cashew kernels of value of Rs. 1,92,67,236 from unregistered dealers in State and, consequently, it was liable to pay sales tax under section 5A of 1963 Act - Assessee denied said allegation and claimed that it had purchased those goods from registered dealers within State of Kerala for purpose of export; according to it, said purchases were covered by declarations in Form No. 18A and, therefore, same stood covered by section 5(3) and were not liable to tax within State of Kerala - In support of its claim, assessee produced trading accounts and details of purchases for relevant assessment year, list of domestic purchases supported by sale bills issued by registered dealers within and outside State against Form No. 18A, prior purchase orders of foreign buyers, copies of export invoices, bill of lading and other records – It was found that Assessing Officer had not decided as to whether purchases made by assessee were in course of export in terms of section 5(3) - Whether it was duty of Assessing Officer to collate facts and ascertain whether purchases in question were effected in course of export and, hence, matter was to be remitted to Commissioner (Appeals) to consider averments of assessee and decide matter after taking into consideration documents submitted by assessee - Held, yes [Paras 8 and 9]

Citation :
Alagendran Exports (P.) Ltd. v. State of Kerala [Civil Appeal No. 4998 of 2008]