1980 (12) TMI 180

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....e assessment was reopened, and the sum of Rs. 21,62,725.51 was added in the assessment by an order dated 3rd July, 1974. In the appeal before the Appellate Assistant Commissioner the inclusion of this turnover was disputed and the Appellate Assistant Commissioner accepted the plea of the assessee and allowed the claim. The Board took suo motu revision proceedings, as it considered that the Appellate Assistant Commissioner acted erroneously in granting exemption on the said turnover. In the view of the Board, the sales were only local sales exigible to tax under the Tamil Nadu General Sales Tax Act. The objection of the assessee was called for and the Board restored the sum of Rs. 21,61,725.51 to assessment. The present appeal challenges ....

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.... That bank would advise the sellers, viz., the State Trading Corporation, of the establishment of the commercial letter of credit through the State Bank of India. The charges connected with the extension of the letter of credit were to be at the expense of the State Trading Corporation. The payment was to be effected against the presentation of the shipping documents to the extent of 95 per cent. The remaining 5 per cent of the value was to be paid by the buyers to the sellers not later than 40 days after the date of drawing up of the survey reports and final acceptance of the goods. On 21st May, 1971, the State Trading Corporation entered into an agreement with the assessee. In the said agreement, it is recited that the State Trading Corpo....

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.... and 27th July, 1971, and the freight was to be paid by the buyer. The payment was to be against the irrevocable letter of credit dated 14th July, 1971, from the State Bank of India, Mount Road, Madras-2, opened by the State Trading Corporation of India. The bill of lading was made out "On A/c. the State Trading Corporation of India Limited.". Similar invoices and bills of lading were prepared in respect of the other consignments. The question for consideration is, whether the assessee effected any sales of goods in favour of the buyer in U.S.S.R., so that the sales can be considered to be export sales. We consider that the sales were effected by the assessee only in favour of the State Trading Corporation. In the bills made out by the a....