TMI Blog2000 (7) TMI 939X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Authority, Sirsa (hereafter described as "the Assessing Authority"). 2.. The facts which have bearing on the decision of this petition are that after hearing the representative of the petitioner, the Assessing Authority passed order dated August 3, 1998 (annexure P1) in respect of the assessment year 1996-97 holding the petitioner is liable to pay sales tax on the paddy purchased from within the State of Haryana, notwithstanding the fact that the rice manufactured out of it had been indirectly exported out of India. The appeal filed by the petitioner was dismissed by the Joint Excise and Taxation Commissioner (Appeals), Rohtak, but the second appeal filed by it was allowed by the Tribunal vide order, annexure P4, dated August 16, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or review of an order made under the said Act, reads as under: 41(1). An Assessing Authority or any person considering himself aggrieved by an order of the Tribunal or any officer above the rank of an Excise and Taxation Officer under this Act and who, from the discovery of any new and important matter or evidence which, after the exercise of due diligence, was not within his knowledge or could not be produced by him at the time when such order was made, or on account of some mistake or error apparent on the face of the record, or for any other sufficient reason desires to obtain a review of the order made against the State or him, may apply for a review of such order to the Tribunal or such officer, as the case may be." 6.. An analysis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e from RM for selling the same to FB. There is privity of contract between RM and DE for the sale of rice by RM to DE for the purpose of export of rice out of India to FB but there is no privity of contract between RM and FB direct. The sale of rice by RM and purchase by DE are the last sale and purchase preceding the sale and purchase in the course of export of rice out of India. According to section 5(3), the sale of rice by RM and purchase by DE are also deemed to be in the course of export of rice out of India. This can be explained with the help of a diagram as under: Paddy Rice miller Rice Direct exporter Rice Foreign buyer Purchase Sale Purchase Sale Purchase Section 4(2) Section 5(3) Section 5(1) Purchase inside the State. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that the rice procured out of the same has been indirectly exported out of India." 8.. However, without even adverting to the reasons recorded by the Joint Excise and Taxation Commissioner (Appeals), the Tribunal quashed the levy of purchase tax by observing that in view of section 15(ca) of the Central Act, such levy is not sustainable in law. The relevant extract of the order passed by the Tribunal reads as under: "In view of the aforesaid clause (ca) the argument of the departmental representative does not survive once it is proved that the rice which had been exported was out of the paddy purchased. Since in the present case there is no dispute above this aspect, the levy of purchase tax on paddy is not sustainable in law. The or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actuated the sponsorer of the Bill to introduce the same and the extent and urgency of evil which he sought to remedy. These objects and reasons cannot be given a legal shape. Since the respondent-dealer had sold rice to the direct exporter, paddy purchased by him does not qualify exemption as provided under section 5(3) of the Central Sales Tax Act, 1956. I, therefore, hold that the Tribunal was wrong to allow such deductions. Accordingly, this order of the Tribunal is reviewed and is set aside while the orders of the Assessing Authority are restored." 10.. In our opinion, even though while reviewing the order dated August 16, 1999, passed by it, the Tribunal has not used the expressions embodied in section 41 of the State Act, it is cle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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