1995 (8) TMI 292

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....d to tax at the last purchase point. It is not in dispute that the assessee purchases mica within the State of Andhra Pradesh and exports the same. During the assessment years in question the assessee claimed exemption under sub-section (3) of section 5 of the Central Sales Tax Act, 1956 ("the Central Act", for short) read with section 38 of the Act in respect of the turnover relating to its purchases of mica which was exported by it. The Commercial Tax Officer concerned exempted the turnover relating to the purchases of mica made by the assessee within the State after the agreements or orders for or in relation to the export of the same, but rejected the claim for exemption in respect of the turnover relating to the purchases of mica made....

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....find any basis for interference with the decision of the Appellate Tribunal. The language of sub-section (3) of section 5 of the Central Act does not permit any other conclusion than that reached by the Appellate Tribunal. The said sub-section is as follows: "5(3) Notwithstanding anything contained in sub-section (1), the last sale or purchase of any goods preceding the sale or purchase occasioning the export of those goods out of the territory of India shall also be deemed to be in the course of such export, if such last sale or purchase took place after, and was for the purpose of complying with, the agreement or order for or in relation to such export." The assessee does not dispute the fact that the disallowed turnovers relate to the ....

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.... satisfies the two conditions specified therein, namely, (a) that such penultimate sale must take place (i.e., become complete) after the agreement or order under which the goods are to be exported and (b) it must be for the purpose of complying with such agreement or order and it is only then that such penultimate sale is deemed to be a sale in the course of export." On the question whether the agreement referred to in section 5(3) means only agreement with the foreign buyer or would include any binding or enforceable agreement to export with a local party to implement which penultimate sale should have taken place, the Supreme Court held: ".......As a matter of pure construction it appears to us clear, therefore, that by necessary impli....