Supreme Court grants relief to assessee in tax exemption case, emphasizes evidence of export link

The Supreme Court allowed the writ petition of the assessee challenging the Special Tribunal's order denying exemption under section 5(3) of the Central Sales Tax Act for converting a chassis into a bus. The Court emphasized the need for the assessee to establish a connection between the penultimate sale and the export of goods. The matter was remitted back to the assessing authority for fresh consideration, allowing the petitioner to present evidence to establish the link and potentially seek a refund of tax and penalty paid. The writ petition was allowed with no costs.

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Issues involved: Challenge to the order of the Special Tribunal regarding exemption u/s 5(3) of the Central Sales Tax Act, 1956 for conversion of chassis into a bus.

Summary:
The petitioner, an assessee, challenged the Special Tribunal's order which held that after the conversion of a chassis into a bus, the petitioner was not entitled to the exemption u/s 5(3) of the Central Sales Tax Act. The Tribunal referred to a decision of the Karnataka High Court, which was later taken on appeal to the Supreme Court. The Supreme Court, in its judgment, emphasized the connection between the penultimate sale and the export of goods, stating that the burden is on the assessee to establish this link. The Court remitted the matter back to the assessing authority for fresh consideration, allowing the petitioner to present all materials to establish the connection. If successful, the petitioner can seek a refund of tax and penalty paid.

In conclusion, the writ petition was allowed with no costs.

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