TMI Blog1981 (7) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... f.o.b. Madras. Both the parties knew that this transaction in yarn was for the purpose of export to Burma. When the exemption was claimed by the assessee it was claimed on the footing that this sales turnover represented sales in the course of export outside the territory of India. The assessee claimed in its relevant sales tax assessment that this sale to the Indo-Burma Corporation was not a sale within the State and cannot be brought to charge under the Tamil Nadu General Sales Tax Act, 1959. The assessee contended that this was a sale in the course of export and hence exempt from sales tax. This contention was rejected uniformly by all the sales tax authorities. right from the assessing officer to the Appellate Tribunal. All of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was concluded between the parties, and the order was placed. In any case, the goods were appropriated to the contract from out of the stock of yarn in the mill premises in Andhra Pradesh. The assessee had to apply to the Central excise authorities for permits to move these bales of yarn to Madras. The applications made in statutory forms also contained, on their face, orders of release passed by the excise authorities in Andhra Pradesh. After the goods were moved from the factory in pursuance of these release orders, and brought to Madras, the assessee delivered them over to the clearing agents for being shipped to Burma. With this narration of facts, Mr. Natarajan urged that the prime mover which occasioned the movement of the 1,000 b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the stock kept at the mill premises. The assessee did not also produce the stock register maintained by the assessee in its sales office at Madras, which would have shown that the 1,000 bales were not delivered from the stock kept at Madras, by the sheer absence of any entries in that register having relevance to this transaction. Nor was any inter-branch correspondence in the assessee's organisation produced to establish the appropriation to the contract at the Padakkani factory and the transport of the yarn bales to Madras by some means of communication. Having regard to the factual considerations aforesaid, the Tribunal concluded that the sale could not be exempted from assessment under the Tamil Nadu General Sales Tax Act as an in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contract of sale the stipulation as to appropriation was otherwise. The contract is said to be oral, but there is no further evidence to show that the goods were required under the terms of the contract, to be sent from the mill godown at Andhra. Whether the appropriation of the yarn was to be from the Andhra factory or from the Madras godown could only be shown by recorded evidence available in the assessee's own stock books, correspondence, lorry-way bills, railway receipts and the like. The assessee has failed to produce evidence of this kind. The Tribunal was, therefore, not called upon to draw the inference which the assessee invited the Tribunal to draw in its favour, "f.o.b. Madras" only shows that the price was fixed with the ide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee to the satisfaction of the Tribunal. We do not think that the Tribunal had altogether ignored the aspects of documentary evidence produced by the assessee relating to the grant of excise permits. Indeed it appears from the Tribunal's order that in their view, the release asked for by the assessee from the Central excise authorities might well have been utilised for replenishing the stock in the assessee's sales office at Madras, without reference to, and subsequent to the appropriation to the contract of the goods already in stock in the Madras sales office. We cannot, therefore, say that the Tribunal had not taken a reasonable view of the facts when they held that the sale was a local sale at Madras when both the parties were at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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