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1980 (4) TMI 278 - SC - VAT and Sales TaxWhether appeal maintainable against the Coffee Board? Whether the amendment introduced by insertion of sub-section (3) in section 5 of the Central Sales Tax Act is ultra vires article 286(2) of the Constitution? At what point of time the property in the coffee sold at export auctions conducted by the Coffee Board passes to the registered exporters (auction purchasers)? Held that:- Writ petitions are partly allowed. The impugned circular dated 7th February, 1977, to the extent to which it insists on production of an agreement with or an order from a foreign buyer from the registered exporters before participating in export auctions is quashed; it is also quashed hereafter to the extent to which it requires the registered exporters to make contingency deposits or furnish bank guarantees out of abundant caution inasmuch as such requirement would be unnecessary in view of our authoritative pronouncement. The Coffee Board may, if so advised, modify its circular or issue an appropriate circular requiring the production of an agreement with or an order from a foreign buyer from the registered exporters just before the property in the coffee sold at such auctions passes under clauses 19 and 20 of the auction conditions. As regards past dealings and transactions, final assessment, if any, made by the taxing authorities as well as recoveries if made thereunder contrary to the view expressed by us above deserve to be set aside and reassessments made and the concerned State Governments will direct their taxing authorities to do the needful and further direct the refund of recoveries made to the Coffee Board which in its turn will refund the same to the concerned registered exporters. Assessments or recoveries if made in conformity with our judgment need not be disturbed.
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