1996 (2) TMI 480

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.... for the petitioner, though he has a right of appeal under the Act but, it has become futile because of the order of the Tribunal holding against the petitioner in relation to assessment for the previous year, therefore he insists that the issue involved should be decided by this Court straightaway in writ jurisdiction. 4.. The petitioner is running a decorticating mill. During the assessment year in question, he had purchased groundnut seeds worth Rs. 15 lakhs from unregistered dealers. Those seeds were subsequently sold to persons who had exported the same to outside India. It is not in dispute that the said exporters had made the purchases from the petitioner for complying with certain agreements/ orders for or in relation to the said....

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.... in relation to such export."   8.. In the present case admittedly three sales/purchases are involved namely: (i) Transaction of sale and purchase between unregistered dealers and the petitioner; (ii) Sale and purchase between the petitioner and the intending exporter; and (iii) The sale effected by the exporter. 9.. A bare reading of sub-section (3) of section 5 of the Central Act makes it clear that under the said provisions only the last sale or purchase preceding the export sale will be deemed to be a sale/purchase in the course of export. Therefore, the purchase made by the petitioner from an unregistered dealer is not covered within the principles formulated in the said provision. As such in my opinion, the a....

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....e STC were not sales in the course of export. In Consolidated Coffee Ltd. [1980] 46 STC 164 (SC) it has been observed at page 181 that: "...............It was at this stage, i.e., when section 5(1) was interpreted by this Court in the aforesaid manner that the Parliament felt the necessity of enacting section 5(3) for the purpose of giving relief in respect of penultimate sales that immediately precede the final (export) sales provided the former satisfy the conditions specified therein." It has further been held by their Lordships that section 5(3) formulates a principle laying down the general guiding rule applicable to all penultimate sales that satisfy the two conditions specified therein within the meaning of article 286(2) of th....