Court allows Revision, exempts export pass fee from turnover, remands on inter-State sales.

The court partially allowed the Revision, setting aside the Tribunal's decision on exempting inter-State sales of Rectified Spirit and Denatured Spirit from tax along with export duty, remanding the matter back to the Tribunal. The court ruled in favor of the Assessee regarding the inclusion of the export pass fee paid by the purchaser, stating it should not be considered part of the turnover of the Assessee, based on legal precedents.

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Issues:
1. Whether the Tribunal was justified in exempting inter-State sales of Rectified Spirit and Denatured Spirit along with export dutyRs.
2. Whether the export pass fee payable by Ex. U.P. purchaser on purchase of Denatured Spirit from Distillery is liable to be included in the taxable turnover of the Revisionist-AssesseeRs.

Analysis:

Issue 1:
The first issue revolves around the Tribunal's decision to exempt inter-State sales of Rectified Spirit and Denatured Spirit from tax along with export duty. The learned Standing Counsel argued that a previous Division Bench judgment had already ruled against the Assessee in a similar matter, stating that the payment of central sales tax on inter-State sale of alcohol was not exempted, despite a general exemption under the 1948 Act. The Tribunal's decision was overturned, and the question was answered against the Assessee and in favor of Revenue based on the precedent.

Issue 2:
The second issue concerns the inclusion of the export pass fee paid by the Ex. U.P. purchaser on the purchase of Denatured Spirit in the taxable turnover of the Revisionist-Assessee. This matter was addressed in a Division Bench judgment and a previous Single Judge judgment. The Division Bench ruling stated that the liability for the export pass fee lies with the purchaser, not the distillery exporting the spirit. The amount of the export pass fee paid by the purchaser should not be considered part of the turnover of the distillery. The Single Judge judgment further emphasized that the dealer exporting the spirit is not liable to pay the export pass fee, as it is the responsibility of the purchaser. Consequently, the Court ruled in favor of the Assessee and against Revenue, stating that the export pass fee should not be included in the turnover of the Assessee.

In conclusion, the judgment partially allowed the Revision, setting aside the Tribunal's decision on the first issue and remanding the matter back to the Tribunal for further proceedings. The second issue was decided in favor of the Assessee based on the legal principles established in the Division Bench and Single Judge judgments.

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