TMI Blog2004 (4) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... goods. The dealer could not produce form H also. Consequently, it levied interest on the aforesaid amount under section 8(1) of the Uttar Pradesh Sales Tax Act. The first appellate authority upheld the rejection of claim of export sale, but deleted the levy of interest under section 8(1) of the Act vide order dated November 27, 1991. The said order has been confirmed in second appeal No.122 of 1992 by the Tribunal vide its order dated June 14, 1994. Aggrieved against the aforesaid order present revision has been filed. Heard learned counsel for the parties and perused the record. Learned Standing Counsel submitted that the turnover of Rs. 1,54,790 is admitted turnover of the dealer-opposite party and, therefore it is liable to pay interest under section 8(1) of the Act. Its books of account have been accepted and the dealer has failed to prove the aforesaid turnover as export sale and is liable to pay interest from the specified date under section 8(1) of the Act. In contra learned counsel for the assessee submitted that the dealer is hundred per cent export oriented unit and is not authorised to sell its product in open market. It is authorised only to export the goods ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e transaction. In this sense to constitute a sale in the course of export it may be said that there must be an intention on the part of both the buyer and the seller to export, there must be an obligation to export, and there must be an actual export. The obligation may arise by reason of statute, contract between the parties, or from mutual understanding or agreement between them, or even from the nature of transaction which links the sale to export. A transaction of sale which is a preliminary to export of the commodity sold may be regarded as a sale for export, but is not necessarily to be regarded as one in the course of export, unless the sale occasions export. And to occasion export there must exist such a bond between the contract of sale and the actual exportation, that each link is inextricably connected with the one immediately preceding it. Without such a bond, a transaction of sale cannot be called a sale in the course of export of goods out of the territory of India. There are a variety of transactions in which the sale of a commodity is followed by export thereof. At one end are transactions in which there is a sale of goods in India and the purchaser immediate or rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able to be taxed accordingly and it by no stretch of imagination could possibly be treated as sale in the course of export. Interest: Section 7 of the Act cast a duty on every dealer, who is liable to pay tax, to submit such return or returns of his turnover at such intervals within such period, in such form and verified in such manner, as may be prescribed. Under section 7(1A) of the Act the dealer shall deposit in the prescribed manner the amount of tax due on the turnover shown in such return. Section 8(1) of the Act provides that the tax admittedly payable shall be deposited within the time prescribed, failing which simple interest at the rate of two per cent per mensem shall become due and be payable on the unpaid amount with effect from the specified date mentioned therein. Explanation to section 8(1) of the Act defines the phrase tax payable means the tax which is payable under this Act on the turnover of sales or purchase or both as disclosed in the accounts maintained by the dealer or admitted by him in any return or proceeding under this Act, whichever is greater. The authorities below deleted the levy of interest under section 8(1) of the Act holding that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to hold that the sales were made in the course of export. The point levy of interest can be examined from a different angle also. Explanation to section 8(1) of the Act provides that tax admittedly payable means besides other things admitted by the dealer in any other return or proceedings under this Act. The dealer accepted the order of the first appellate authority by which his claim for export of sale was rejected. It will amount to admission of central sales by the dealer within the meaning of Explanation to section 8(1) of the Act. Learned counsel for the dealer-opposite party has placed reliance upon the judgment of the Supreme court in the case of J.K. Synthetics Ltd. v. Commercial Taxes Officer [1994] 94 STC 422 (SC); [1994] UPTC 893 and submitted that it is difficult for an assessee to predicate the final assessment and expect him to pay the tax on that basis to avoid the liability to pay interest. That would be asking him to do near impossible. The Supreme Court in that case has considered the provisions of the Rajasthan Sales Tax Act and interpreted the expression tax payable under subsections (2), (2A) of section 7 of the Rajasthan Sales Tax Act. The contr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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