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TMI Blog2018 (12) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... was therefore taken up on board today. Issues being identical, we may notice facts from Appeal No.24 of 2018. 2. The tax appeal is filed by the assessee challenging the judgment of the Maharashtra Sales Tax Tribunal dated 31st January, 2018. 3. Following questions have been presented for our consideration: " i. Whether in facts and circumstances of the case, where there was an inextricable link between the sale by the Appellant and ultimate use of the goods by WHO, and, where WHO had issued necessary statutory declaration under relevant provision of the Act evidencing supply of such goods by the Appellant to WHO, whether the Tribunal erred in disallowing the benefit of nonlevy of Central Sales tax to the Appellant in terms of Section 6( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee in the name of GSK, U.K.. The assessee claims that the GSK, U.K. had a contract with WHO for supply of such drugs. WHO required such drugs in India and therefore, the assessee had the same manufactured through a sister concern which had such manufacturing facilities and the drugs were supplied to WHO in India. 6. On such transactions, the assessee claims exemption for payment of sales tax. The Revenue authorities and the Tribunal did not accept such claim. In a detailed judgment the Tribunal came to the conclusion that the sale was made to WHO and therefore, the assessee's claim of exemption under Sub-section of Section 6 of the Central Sales Tax Act, 1956 (CST for short) was not available. The learned counsel for the assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an ambiguity in a taxing statute, benefit must flow in favour of the assessee. 8. As noted, relevant facts are not seriously in dispute. The agreement for procurement and supply of the specified drugs to WHO was between GSK, U.K. and WHO. It appears that GSK, U.K. entrusted the task of manufacturing and supplying the said drugs to the assessee, its group company in India. To complete the arrangement, therefore, the assessee sold the drugs to GSK, U.K., which could be demonstrated as per the billing. Under the instructions of GSK, U.K., the assessee delivered the drugs to WHO in India. The question that arises is whether under such circumstances the assessee can claim exemption from tax under Sub-section 3 of Section 6 of CST Act and faili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y such dealer, in the course of inter-State trade or commerce, to any official, personnel, consular or diplomatic agent of (i) any foreign diplomatic mission or consulate in India; or (ii) the United Nations or any other similar international body, entitled to privileges under any convention or agreement to which India is a party or under any law for the time being in force, if such official, personnel, consular or diplomatic agent, as the case may be, has purchased such goods for himself or for the purposes of such mission, consulate, United Nations or other body." 10. Sub-section 1 of Section 6 as can be seen is a charging provision. Proviso to Sub-section 1 provides that a dealer shall not be liable to pay tax under the said Act on any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to claim this benefit, therefore, the sale had to be export sale of goods travelling out of territory of India. The Tribunal, therefore, correctly did not accept this contention.
12. Learned counsel for the assessee may be correct in contending that the interplay of the provisions of the Sub-section 3 and Sub-section 1 of Section 6, in the present case would lead to some what harsh consequences. However, when the provisions of law are clear, the consequences cannot be avoided. Contrary to what was canvassed before us, this is not a case of any ambiguity in the the statutory provision giving rise to the concept of the benefits flowing to the assessee in such a situation. In the result, tax appeals are dismissed. X X X X Extracts X X X X X X X X Extracts X X X X
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