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2011 (1) TMI 376 - SC - VAT and Sales TaxRefund Claim - Sale Tax - The appellant claim for refund of tax collected from them by the seller at the time of purchase of tea - The said claim was rejected by the Assessing authority and it was held that they cannot claim for refund under Section 44 of the KGST Act since they have not paid the tax to the Department but it was the sellers who have paid the tax and therefore under the provisions of Section 44 of the KGST Act, the refund that could be made is to the dealer only and the assessee being not a dealer no such refund could be made to the appellant/assessee - State cannot retain the tax which is overpaid, but at the same time such overpaid tax cannot be paid to the assessee/appellant here - on the basis of the mandate of the provisions of the State Act, the decision does not call for any interference at our end - Hence, refund is not permissible. Export - Exemption u/s 5(3) of the Central Sales Tax Act, 1956 - Central Sales Tax - The appellants are exporters of tea - The appellants purchased tea from the tea planters directly in open auction and thereafter exported the same - There is no agreement available on record to indicate that the aforesaid purchase was made for the purpose of export - At the time of auction sale when the appellant purchased the tea from the dealer, there is nothing on record to show that a definite stand was taken by the purchaser that the aforesaid purchase of tea is for the purpose of occasioning an export for which an agreement has been entered into -Since, no such claim was made at that stage, so therefore sales tax was realised which was paid to the government by the dealer - It is a clear finding recorded by the assessing authority himself that the export documents were verified by him with the accounts from which it is indicated that the entire exports were effected pursuant to the prior contract or prior orders of the foreign buyers and that the export sales are supported by bills of lading, export invoices and such other valid documents - Hence, the assessing Authority clearly held that the claim for exemption was genuine and the same has to be allowed in full.
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