1953 (5) TMI 8 - SC - VAT and Sales Tax

Whether in addition to the export-sale and import-purchase, which were held in the previous decision to be covered by the exemption under clause (1)(b), the following two categories of sale or purchase would also fall within the scope of that exemption.

Held that:- Appeal dismissed. The last type of transaction in African raw cashew-nuts is where the purchase takes place after the cashew-nuts arrive in Travancore port and are thereafter sold and delivered ex-godown to the respondents. This is clearly a case of intra-State sale and clauses (1)(a) and (2) of the Article can have no application to it. The respondents cannot claim exemption under clause (1)(b) for reasons stated above. As the respondents do not claim any exemption from taxation with res- pect to pre-Constitution purchases, the same need not be discussed separately. For reasons stated above, the decision of the High Court must be upheld only to the extent that the assessments should be quashed. The matter must, however, go back to the Sales Tax Officer who must make a reassessment in the light of the principles laid down in the two previous cases referred to regarding clause (1)(a), the Explanation and clause (2) and in the light of the principles discussed above regarding clause (1)(b).