TMI Blog1993 (4) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... matters to be disposed of by the authorities under the Act in the light of the law declared by this Court in Murli Manohar [1990 (10) TMI 329 - SUPREME COURT OF INDIA] Hotel Balaji [1992 (10) TMI 240 - SUPREME COURT OF INDIA] and in this judgment. - Writ Petition (Civil) No. 9835-9838 of 1983, - - - Dated:- 28-4-1993 - JEEVAN REDDY B.P. AND VENKATACHALA N. JJ. Writ Petition (Civil) No. 9835-9838 of 1983, Writ Petition (Civil) No. 7468, Writ Petition (Civil) No. 7469 of 1981, Writ Petition (Civil) No. 81, Writ Petition (Civil) No. 489, Writ Petition (Civil) No. 490, Writ Petition (Civil) No. 3839 of 1983, Writ Petition (Civil) No. 386 of 1984, Writ Petition (Civil) No. 5398, Writ Petition (Civil) No. 5435, Writ Petition (Civil) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioners say, they sold them to dealers in Delhi who, in turn, exported them out of India. At the time of sale of handicrafts to Delhi dealers, the Delhi dealers issued form H, prescribed under the Central Sales Tax (Registration and Turnover) Rules, 1957, which means that the goods purchased were meant for export. Neither party paid tax on the said sale/purchase. For the assessment years in question, the sales tax authorities of Haryana levied purchase tax on the purchase of raw material made by the petitioner, following the decision of the Punjab and Haryana High Court in Murli Manohar Co. v. State of Haryana (Civil Writ Petition No. 1227 of 1980), under section 9 of the Haryana General Sales Tax Act, 1973. However, the assessing aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sachi Mukharji and Ranganathan, JJ., held in Goodyear India Ltd. v. State of Haryana [1990] 76 STC 71; (1990) 2 SCC 71 that where the goods manufactured are taken out of Haryana (without effecting a sale) to the branch office or depot of the manufacturer or to the office or depot of his agent, no purchase tax can be levied under section 9 of the Act on the raw material purchased within the State and used in the manufacture of such goods. It was held that imposing such tax would amount to levying tax on consignment, which the State Legislature was not competent to do. Section 9, as it then stood. stated expressly that no such purchase tax on raw material was leviable, if the goods manufactured out of such raw material were sold either within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ally similar to the facts herein. The dealers within the State of Haryana purchased raw material without paying tax, manufactured goods out of the same and sold the manufactured goods to dealers who in turn exported those goods out of India. On these facts it was held by the Punjab and Haryana High Court that inasmuch as the sale to exporters was a penultimate sale falling under section 5(3) of the Central Sales Tax Act and further inasmuch as section 9 of the State Act exempted only export sales within the meaning of section 5(1) of the Central Sales Tax Act but not the penultimate sale falling under section 5(3), tax under section 9 was leviable. On appeal, this Court affirmed that section 9 of the Haryana Act (before it was amended by Ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere a dealer in Haryana takes his goods out of Haryana without effecting a sale. An illustration would serve to highlight what we say: a Haryana manufacturer takes his goods to Delhi without effecting a sale. In Delhi, if he finds it more profitable, he will sell it to a dealer in Delhi. Or if he finds it more profitable to sell it to an exporter in Delhi he will sell the same to such exporter. These two sales are neither intra- State sales nor inter-State sales, nor export sales within the meaning of section 5(1) of the Central Sales Tax Act. In one case, it is a sale in Delhi and in the other, it is a penultimate sale within the meaning of section 5(3) of the Central Sales Tax Act. According to section 9 of the Haryana Act, as explained i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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