TaxTMI 
TaxTMI 
2003 (7) TMI 663
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.... 1996. The G.O. in annexure II, paragraph 10, offered special concessions for exports applicable to 100 per cent export oriented units with export effort of a minimum of 25 per cent of the value of total turnover. Entry tax exemption was offered in the case of 100 per cent export orient units. It was implemented in terms of a notification dated November 15, 1996. The industrial policy is dated March 15, 1996. The same was implemented by way of a notification dated November 15, 1996 in terms of section 11-A of the Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale therein Act. As equivalent of entry tax exemption offered to 100 per cent export orient units in the industrial policy G.O. dated March 15, 1996, the not....
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.... entry tax granted in the Notification No. FD 32 CSL 96 dated November 15, 1996. The assessing authority issued proposition notice and assessed to entry tax at 1 per cent. The petitioner filed objections. In the objections, the petitioner stated that penultimate sales within section 5(3) of the Central Sales Tax Act, 1956 are also exports. The petitioner contended that exemption cannot be denied on raw materials and components in the matter of entry tax. The assessing authority, however held that the objections filed by the petitioner were untenable in view of the definition of the export notification dated November 15, 1996, annexure "B". Assessment orders are produced at annexures "C" to "C8". The petitioner with these facts is before me ....
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....sion Bench directed the petitioner to file statutory appeals and the appeals are to be kept pending till the disposal of these writ petitions. The industrial policy is placed at annexure "A". The industrial policy provides for active participation of industry in development of infrastructure. Annexure "A" states that after liberalization of economic policies, private sectors have shown interest in investigating the infrastructure areas. Several projects are under implementation of the State and these projects have shown the potential in these areas. With a view to have further flow of investment of infrastructure area the Government has taken several measures in terms of the policy. The Government in terms of its policy has granted sp....
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.... India from time to time." 8.. However, while providing explanation for the purpose of notification, export has been defined in the notification. The explanatory "export" meaning is as defined in sub-section (1) of section 5 of the Central Sales Tax Act, 1956. A restricted meaning is given to "export". At this stage, it is relevant to notice section 5 of the Central Sales Tax Act, which provides for import or export sale or purchase. The said section reads as under: "5. When is a sale or purchase of goods said to take place in the course of import or export.-(1) A sale or purchase of goods shall be deemed to take place in the course of the export of the goods out of the territory of India only if the sale or purchase either occasio....
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....th the export sale and it has become an integral part of the 'course of export'. The earlier decisions to the extent they held that such a penultimate sale is not part of the integrated activities of export and that it is not in the 'course of export' is now no longer operative. The penultimate sale falling within section 5(3) of the Central Act stands merged with the export sale and constitutes an essential ingredient of the 'course of export sale'. If such a 'penultimate sale' is treated as a 'sale in the course of inter-State trade or commerce', because, such a penultimate sale also incidentally satisfies the requirements of section 3(a) of the Central Act, the real identity of the said penultimate sale, in law, would be missed. May b....
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....e in the light of the judgment of this Court is an unbreakable merger in the course of export. The Policy provides for concessions for export. That export as defined under the policy cannot be restricted by way of explanation while issuing the notification. Therefore, the petitioner is correct in his submission that the restricted explanatory meaning to export require my interference. In these circumstances, I quash the words sub-section (1) in clause (2) explanation to the notification dated November 15, 1996. I further deem it proper to declare that the explanatory meaning to the export is as defined under section 5 in its entirety. 11.. This Court, at the time of admission has confined the writ petition to prayers 1 and 2. The d....