TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether sales said to have been made in the course of export to Nepal could be denied exemption or non-taxability merely because the dealers did not produce a certificate from the Indian Customs Authorities; (ii) whether the circulars issued by the Commissioner of Sales Tax could bind assessing authorities in the exercise of their quasi-judicial powers and thereby control the manner of assessment.
Issue (i): Whether sales said to have been made in the course of export to Nepal could be denied exemption or non-taxability merely because the dealers did not produce a certificate from the Indian Customs Authorities.
Analysis: Article 286 of the Constitution of India, Section 5 of the Central Sales Tax Act, 1956 and Section 8 of the Delhi Sales Tax Act, 1975 prohibit State taxation on sales taking place in the course of export out of India. The Court held that no statutory provision prescribes a single mandatory mode of proof for establishing export. Export may be proved by the contract, invoices, transport documents and other reliable evidence sufficient to satisfy the assessing authority on the facts of the case. A rigid insistence on one particular customs certificate as the only admissible evidence is unsupported by law.
Conclusion: The sales could not be denied non-taxability solely for want of a certificate from the Indian Customs Authorities.
Issue (ii): Whether the circulars issued by the Commissioner of Sales Tax could bind assessing authorities in the exercise of their quasi-judicial powers and thereby control the manner of assessment.
Analysis: The assessing authority performs a quasi-judicial function and must decide each matter independently on the material on record. Administrative instructions may regulate the administrative side of the department, but they cannot override statutory discretion or compel a particular conclusion in an adjudicatory matter. The impugned circulars required the authorities to insist on specified documents and treated non-production as decisive, thereby fettering quasi-judicial judgment and operating beyond the Commissioner's jurisdiction.
Conclusion: The circulars were ultra vires and could not govern or constrain the assessing authorities' quasi-judicial -making.
Final Conclusion: The petitions succeeded, the impugned circulars were quashed, and the assessments based on them were set aside for fresh consideration in accordance with law.
Ratio Decidendi: Administrative instructions cannot control or fetter the quasi-judicial discretion of assessing authorities, and taxability of export sales must be determined on the basis of all relevant evidence, not on a single prescribed certificate unless the statute so requires.
TaxTMI 
TaxTMI 
