2011 (1) TMI 1295

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....acts and circumstances of the case, the sale of bus bodies by the respondent to the exporter of passenger buses qualifies for exemption under section 5(3) of the Central Sales Tax Act, 1956? (ii) Whether, on true and correct interpretation of the provision of section 5(3) of the Central Sales Tax Act, 1956, the supply of bus bodies by the respondent to the exporter of passenger buses could be legally held to be 'for the purpose of compliance with the agreement or order for or in relation to export' of passenger buses? (iii) Whether the Tribunal was justified in ignoring the apex court judgments in cases reported as [1998] 108 STC 258 (SC) in case of K.A.K. Anwar & Co. v. State of Tamil Nadu as well as [1986] 63 STC 239 (SC) in....

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....nd claimed exemption in respect of the said turnover under section 5(3) of the Central Sales Tax Act, which was allowed by the Assessing Authority. However, the revisional authority exercised suo motu jurisdiction to interfere with the order of the assessment on the ground that penultimate transaction preceding the export could not be held to be in the course of export. On appeal, the Tribunal set aside the view taken by the revisional authority as under: "We have considered the submissions made by both the parties and have also seen the facts on record. We have also gone through the judgments relied upon by rival parties carefully. After perusal of the record, we do not agree with the contention of the State Representative that the Asse....

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....he pending orders with him and that the purchase from the petitioner was for the purpose of complying with the agreement or order for or in relation to such export. The "agreement" or "order" has reference to those goods which are actually exported out of the country. The words "in relation to such export" extend the scope of the exemption to the extent that even if there is no agreement or order but they are in relation to such export, the exemption can still be claimed. This would cover not only the packing material, but all other such sales which are made to the exporter for which by implication it could be considered that there was an agreement or order in respect thereof. According to our considered view, so long as there is sale of....