Court dismisses appeals on taxable purchases, affirms jurisdiction of Commissioner to revise orders. Costs awarded.

The court dismissed the appeals, ruling that the purchases were not made in the course of export outside India, were liable to be taxed under section 5(3)(b) of the Act, and the Commissioner had jurisdiction to revise the Deputy Commissioner's orders. The respondent was awarded costs, and the advocate's fee was set at Rs. 100.

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Issues Involved:
1. Whether the purchases in question were made in the course of export outside India.
2. Whether the purchases were liable to be taxed under section 5(3)(b) read with Schedule III of the Mysore Sales Tax Act, 1957.
3. Whether the Commissioner had the jurisdiction to revise the orders of the Deputy Commissioner of Commercial Taxes while appeals were pending before the Sales Tax Appellate Tribunal.

Issue-Wise Detailed Analysis:

1. Purchases in the Course of Export Outside India:
The primary issue was whether the purchases made by the assessee were in the course of export outside India. The court examined the facts and concluded that the purchases were made by the assessee to fulfill antecedent contracts with a foreign buyer. The court referred to several Supreme Court decisions, including East India Tobacco Company v. The State of Andhra Pradesh and Another, State of Travancore-Cochin v. Shanmugha Vilas Cashewnut Factory, and The State of Madras v. Gurviah Naidu & Co. Ltd., which established that purchases made for the purpose of export do not qualify as purchases in the course of export. The court concluded that the transactions in dispute could not be considered as purchases in the course of export outside India.

2. Tax Liability under Section 5(3)(b) read with Schedule III:
The next issue was whether the transactions fell within the scope of section 5(3)(b) read with Schedule III of the Act. The court noted that section 5(3)(b) provides for single-point taxation on purchases of certain articles enumerated in Schedule III, which includes iron and manganese ore. The court rejected the contention that there must be a series of purchases for a transaction to be taxable, stating that the object of section 5(3)(b) is to tax all purchases of goods mentioned in Schedule III at one point, either the first or the last purchase. The court concluded that the transactions in question were liable to be taxed under section 5(3)(b) of the Act.

3. Jurisdiction of the Commissioner to Revise Orders:
The final issue was whether the Commissioner had the jurisdiction to revise the orders of the Deputy Commissioner while appeals were pending before the Sales Tax Appellate Tribunal. The court analyzed section 21(2) of the Act, which grants the Commissioner the power to call for and examine the record of any order passed by a subordinate officer for the purpose of satisfying himself as to the legality or propriety of such order. The court clarified that the Commissioner's suo motu power under section 21(2)(i) is independent and not limited by the pendency of an appeal. The court rejected the argument that the Commissioner's power to revise orders would jeopardize the appellate authority's power, noting that the Commissioner had only revised the portion of the Deputy Commissioner's order not under appeal. The court concluded that the Commissioner had the jurisdiction to revise the orders of the Deputy Commissioner.

Conclusion:
The court dismissed the appeals, holding that the purchases in question were not made in the course of export outside India, the transactions were liable to be taxed under section 5(3)(b) of the Act, and the Commissioner had the jurisdiction to revise the orders of the Deputy Commissioner. The appeals were dismissed with costs of the respondent, and the advocate's fee was set at Rs. 100.

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