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2017 (11) TMI 1160 - HC - VAT and Sales TaxExemption from tax - purchases of mentha oil - notification dated 12 February 1999 - denial on the ground that it was not the ultimate exporter of the goods and unless it were established that the manufacturer and ultimate exporter are one and the same, the benefit flowing from the said notification would not be available - Held that: - A plain reading of the terms of the notification establishes that the primary issue which must govern the grant of exemption is the export of the manufactured goods. The notification neither mandates nor provides that the manufacturer himself export the goods out of India. As is evident from a plain reading of "Condition (i)", the emphasis is on the manufactured goods being exported and not that the actual manufacturer export the goods. The crucial test, therefore, is whether the manufactured goods have ultimately been exported out of India. In view thereof, the Court finds that the reasoning which weighed with the Department to deny relief to the revisionist on this score cannot be sustained. Admittedly the assessee was not the ultimate exporter of the goods. In order to succeed, therefore, it would be incumbent upon him to establish that the transactions fall within the ambit of Section 5 (3) of CST Act 1956. This issue as to whether the manufactured goods have moved in the course of export cannot be determined on the basis of the notification dated 12 February 1999 since this would principally have to be answered with reference to the provisions encapsulated in section 5. Appeal allowed by way of remand.
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