2017 (6) TMI 1005

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....van, AGP for the Applicant State Mr. Prakash Shah a/w Mr. Jas Sanghavi i/by PDS Legal for the Respondent ORDER Per Court The Tribunal has referred the following question for decision : "Whether the tender of an import licenses called REP licenses/Exim Scrips by the holder thereof after discontinuance of Import Export Policy since 1.3.1992 to the branches of the State Bank of I....

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....e said case is as under : "The seminal question that emerges for consideration in this appeal is whether State Bank of India (SBI) and its branches, which are registered dealers under the Bengal Finance (Sales Tax) Act, 1941 (for brevity "the Act") would be liable to levy of purchase tax under Section 5 (6a) of the Act for accepting the Exim scripts (Export Import Licence on payment of pr....

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....rd person for consideration, they would attract sales tax. However, the position would be different when replenishment licences or Exim scrips are returned to the grantor or sovereign authority for cancellation or extinction. In this process, as and when the goods are presented, the replenishment licence or Exim scrip is cancelled and ceases to be a marketable instrument. It becomes a scrap of pap....

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....ires and seeks the return of replenishment licences or Exim scrips with the intention to cancel and destroy them, the replenishment licences or Exim scrips would not be treated as marketable commodity purchased by the grantor. Further, SBI is an agent of RBI, the principal. The Exim scrips or replenishment licences were not "goods" which were purchased by them. The intent and purpose was not to pu....