TMI Blog1987 (4) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... isional assessment of sales tax for the month of May, 1986 (for the assessment year 1986-87). For the assessment years 1984-85 and 1985-86 the petitioner's prayer is to quash the show cause notices issued by the Deputy Commissioner, Commercial Taxes, Vizianagaram, requiring the petitioner to show cause why turnovers of Rs. 97,75,925 and Rs. 2,12,500 respectively should not be assessed to tax at 6 per cent and additional tax at 1/2 per cent under-section 5-A of the Andhra Pradesh General Sales Tax Act, 1957 and surcharge at 10 per cent on the tax due under section 6-B of the aforementioned Act. In Writ Petition No. 12215 of 1986 the petitioner's prayer is to quash the order of the Commercial Tax Officer-I, Vizianagaram, in G.I. No. 1866 of 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purpose of complying with, the agreement or order for or in relation to such export." It may be pointed out that section 5(3) of the CST Act above referred envisages that goods are eligible for exemption on their preceding sale or purchase only when the same goods are agreed to be supplied to the foreign buyers. Exemption is not allowable if the goods agreed to be supplied to the foreign buyers are different from the goods purchased. 6.. The petitioner's contention before the sales tax authorities is that raw cashew-nuts are purchased in the State of Andhra Pradesh solely for the purpose of complying with the agreements entered into with foreign buyers for sale of kernel and that raw cashew-nuts and kernel are not different goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Andhra Pradesh subject to the superintendence of this Court under article 227 of the Constitution of India and the authorities are, therefore, bound to follow the judgment of this Court above referred. Learned counsel submitted that the sales tax authorities cannot refuse to follow the decision of this Court on the ground that a contrary view has taken by the Madras, Karnataka and Kerala High Courts. 9.. Learned Government Pleader for Commercial Tax Department does not dispute the fact that the petitioner is entitled to claim exemption under section 5(3) of the CST Act, if it could be shown that the goods purchased in this State are for the purpose of export to territory outside India pursuant to the agreements entered into. Learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dities. Learned Government Pleader also relied on the judgment of the Madras High Court in Dinod Cashew Corporation v. Deputy Commercial Tax Officer [1986] 61 STC 1 where the Madras High Court dissented from the judgment of this Court in Singh Trading Co. v. Commercial Tax Officer, Srikakulam [1979] 44 STC 1 above referred and held that raw cashew-nut and kernel are two different commercial products. It is submitted that the Madras High Court's decision is the subject-matter of appeal in the Supreme Court. Learned Government Pleader also invited attention to the decision of the Karnataka High Court in Peirceleslie India Ltd. v. State of Karnataka [1985] 59 STC 302 and the decision of the Kerala High Court in State of Kerala v. G. Sankaran N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eferring the matter to a Full Bench for reconsideration, as either side is likely to carry the matter further to the Supreme Court. We find that the judgment of the Division Bench in Singh Trading Co. case [1979] 44 STC 1 (AP) held the field for a period of seven years. A perusal of that judgment would show that the conclusion was reached on the basis of various other judgments of this Court as well as other High Courts. In our opinion, it would be inappropriate to refer the matter for reconsideration by a Full Bench just because there is a contrary view taken by another High Court or High Courts. What is more significant is that till now the sales tax authorities themselves accepted the judgment of this Court without any demur and even now ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gned notices for these two years. So far as the provisional assessment for the month of May, 1986 in W.P. No. 12215 of 1986 is concerned, we set aside the provisional assessment. It will be open to the sales tax authorities to make a a final assessment at the appropriate time following the decision in Singh Trading Co. case [1979] 44 STC 1 (AP) and for the purpose of making final assessment it will be open to the Commercial Tax Officer to require the petitioner to produce agreements/orders for the export of cashew-nut kernel to territories outside India in order to factually support the claim of exemption under section 5(3) of the CST Act. 14.. In the result, all the three writ petitions are allowed, but without costs. Government Pleader' ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
