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1975 (11) TMI 128 - HC - VAT and Sales TaxIn respect of export of cotton yarn and cotton textiles under the Cotton Textiles Export Promotion Incentive Scheme, the assessees were granted import licence for importation of textile chemicals, dyes and gums. One R agreed to purchase from the assessees the imported dyes and chemicals. But as the licence was not transferable, it was agreed that the assessees would sell to R on monopoly basis the imported goods on forward, afloat or c.i.f. basis at a certain price. On receipt of a part of the sale price, which was the premium, the assessees agreed to hand over the licence to enable the purchaser to take steps for importing the goods in the name of the assessees. Held, that as the licensed importer was the assessees and the purchaser could not have placed on order with the foreign seller, there was no privity of contract between the foreign seller and the purchaser and that, therefore, there was a sale by the assessees to the purchaser which was liable to be taxed under the Tamil Nadu Act.
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