TMI Blog2006 (11) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... ntly liable to be assessed as sales turnover. The admitted facts are that agreed price is linked to value of imported components and there is a price escalation clause, which entitles petitioner to recover differential exchange rate and to collect the consequent customs duty payable thereon. This presupposes that price in Indian rupee was fixed depending on the prevailing exchange rate and, in fact, the exchange rate fluctuates in favour of the purchasers, then petitioner would have had to pay the differential amount to the purchaser. The Tribunal confirmed the findings of the lower authorities on the ground that price escalation is part of the contract and is directly recovered by the seller from the purchaser, which is attributable to sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the refinery to make up the loss on account of price fixation of petroleum products by the Government. The amount so paid is very similar to the fertiliser subsidy paid in the other case. Therefore this decision also does not help the petitioner to get over the liability and since the facts herein clearly establish that the price difference received is based on a provision in the contract of sale and it forms sales turnover assessable under the Act, there is no scope for interference. An alternative question raised in Sales Tax Revision No. 390 of 2006 pertaining to the year 1995-96 is that the turnover in respect of the sales were offered for the year 1992-93 and was in fact assessed. We do not know whether it was a case of advance acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal was justified in confirming disallowance of exemption claimed under section 5(2) of the CST Act on supply of imported goods to the purchaser, NTPC (National Thermal Power Corporation). On going through the Tribunal's order, we find that the Tribunal has confirmed disallowance for want of evidence. We do not know what prevented the petitioner from furnishing documents, copy of the contract, bill of entry, etc., which would have proved the nature and character of the transaction for substantiating petitioner's claim for exemption. In the first place the purchaser also being a Government company would have made provision for payment of tax along with the price or otherwise understanding about exemption available under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods took place. According to the petitioner the goods were imported to port outside Kerala, which is nearer to the buyer's destination and the goods in fact were cleared from those ports and delivered to the customer at their site. The specific case of the petitioner is that most of the goods were lying in ports outside Kerala and were cleared from those ports and delivered to the customer's site. If the imported goods are supplied to the customer as such or consigned to customer's site, where it is assembled and delivered, then of course there is no justification for the assessment in Kerala. However, if the items imported were components and after clearance were brought to petitioner's factory for assembling, then the tra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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