TaxTMI 
TaxTMI 
1999 (4) TMI 582
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....gainst them. In some of the assessment years, for instance in W.P. No. 28355 of 1998, a reference has been made to the circular of the Commissioner and the claim for exemption was negativated on the basis of the said circular. 2.. The relevant portion of the circular, which was issued after clause (ca) was introduced into section 15 of the Central Sales Tax Act by Finance Act of 1996, reads as follows: "When rice is exported to other countries no tax can be levied on the corresponding value of paddy used for obtaining such rice. This clarification is applicable when rice miller after purchasing paddy converts it into rice and exports the rice. But it will not apply to the transactions where a miller is selling rice to other exporters. As ....
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....hase occasioning the export of those goods shall 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. This provision was introduced in the year 1976 in order to expand the ambit of tax immunity extended to the transactions intimately connected with export. The Central Sales Tax Act, 1956, was further amended in the year 1996 by adding clause (ca) to section 15 so as to amplify the scope of immunity under section 5(3) to the export transactions involving rice. Clause (ca) of section 15 reads as follows: "Where a tax on sale or purchase of paddy referred to in sub-clause (i) of clause (i) of section 14 ....
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....ve to necessarily challenge the same before the appellate and revisional authorities constituted under the Act. 7.. We, therefore, heard the arguments in so far as the validity of the impugned circular of the Commissioner is concerned. It cannot be gainsaid that in the face of the circular issued by the Commissioner, the assessing and appellate authorities under the Act who are subordinates to the Commissioner cannot take an independent view on the interpretation of the relevant provisions. It is true that the Act enjoins that the Commissioner's circular is not binding on the appellate authority. But, in effect and in substance, the appellate authority, who is administratively subordinate to the Commissioner and whose orders are also amena....
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.... export of such goods' in so far as it relates to export to any place outside the territory of India, shall include the last sale or purchase of any such goods preceding the sale or purchase effected immediately before the export of such goods, as referred to in sub-section (3) of section 5 of the Central Sales Tax Act, 1956." (emphasis* supplied) 10.. The contention of the learned counsel for the petitioners is that the purchase of paddy by the petitioners pursuant to the orders placed on them by the exporters of rice is squarely covered by the explanation, whatever view may be taken as regards the interpretation of section 5(3). It is contended that this explanation read with clause 15(ca) squarely extends the tax exemption to the transa....
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....the APGST Act, has in our view, made a truncated approach to the problem and such a circular shall not be allowed to stand and have a binding or persuasive effect on the concerned authorities. 12.. We, therefore, quash the aforementioned circular issued by the Commissioner of Commercial Taxes. Consequentially, we allow such of these writ petitions in which the assessments were made quoting and following the circular of the Commissioner. In such cases, the assessments--provisional or final shall be re-done. However, those writ petitions, in which the claim for exemption has been negatived independently without referring to the Commissioner's circular, either on the interpretation of section 5(3) or on the ground of lack of nexus between the....