1988 (4) TMI 406

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....ealing in textiles, handicrafts, silver jewellery, readymade garments, etc., is a regular assessee on the file of the respondent and is regularly assessed to sales tax in respect of the many years past. The assessment is being made on the basis of the annual turnover shown by the petitioner in form A-1. Provisional assessment is made for the current year on the basis of the turnover determined in the previous year. The petitioner effects sales locally as well as in the course of export. The items dealt with by the petitioner being handicrafts, have export potential and hence substantial sales are effected thereof to foreign tourists visiting India. These sales constitute export sales in terms of the import policy issued by the Government of....

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.... accepted the above import policy enunciated by the Government of India and had accepted the sales of the items mentioned above to foreign tourists within the country as exports eligible for exemption under the State Act. Accordingly, the sales turnover of the petitioner in respect of the abovesaid items was accepted as turnover of sales in the course of export and exemption in respect thereof had been granted. 3.. Mr. R. Lokapriya, the learned Government Advocate (Commercial Taxes) submits that it is contended in the counter-affidavit filed by the respondent that the dealers have not effected any direct export sales but they have effected sales to foreign tourists on payment of foreign currency. It is true that the import policy of the ....

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.... petitioner can be granted or not. 5.. It is relevant to note that there is no pre-existing agreement or order to sell specific goods to foreign buyers. Further sales are also not in the course of export as laid down under section 5(3) of the Central Sales Tax Act. The sales to foreign tourists by the petitioner cannot be treated as export sales or sales in the course of export. According to section 16(1)(a) of the State Act, where, for any reason, the whole or any part of the turnover of business of a dealer has escaped assessment to tax, the assessing authority may, subject to the provision of sub-section (2), at any time within a period of five years from the expiry of the year to which the tax relates, determine to the best of his ju....