TMI Blog2021 (2) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... her the goods purchased by the exporter were actually exported as such or as a different commodity - After taking note of all the features as well as documents, the Tribunal held that the dealers were entitled to exemption under Section 5(3) of the Act, as the coffee seeds supplied by the dealers were roasted, ground, extracted and spray dried, which did not alter the character of the goods supplied by the dealers. In the instant case, the transaction between the dealers and the exporter and the transaction between the exporter and the foreign buyer are inextricably connected and this has been clearly brought out by the Tribunal after examining the documents, which were placed by the dealers before it. Therefore, in terms of the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act states that not withstanding anything contained in Sub-Section (1), the last sale or purchase of any goods preceding the sale or purchase occasioning the export of those goods out of the territory of India shall also be deemed to be in the course of such export, if such last sale or purchase took place after and was for the purpose of complying with the agreement or order for or in relation to such export. 5. The case of the State before us is that the respective dealers would not be entitled to the benefit of Section 5(3) of the Act because what were exported, were not those goods, which were purchased. The dealers purchased coffee seeds and the exporters exported instant coffee, soluble coffee, Indian spray dried coffee and In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 11.2.2020]. 9. On perusal of the said decision of this Court, we find that the Hon'ble Division Bench, after noting the decision of the Constitution Bench of the Honble Supreme Court in the case of State of Karnataka Vs. M/s.Azad Coach Builders (P) Ltd. [reported in (2010) 36 VST 1], held that in the said case, there was no link established between the sale or purchase of raw hides and skins by the assessee therein and the export of leather garments or dressed hides and skins. Furthermore, the Court found that there was no export order available on record nor the specifications of the purchase of raw hides and skins by the importer in foreign countries and thus, held that the decision of the Hon'ble Supreme Court in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court in the case of Azad Coach Builders (supra). 11. As rightly pointed out by the learned Special Government Pleader, the ' same goods theory cannot be used to widen the scope of Section 5(3) of the Act. In fact, this was noted by the Hon'ble Supreme Court in the decision in the case of M/s.Azad Coach Builders and it was observed that it all depends on the question as to whether the sale or purchase is inextricably connected with the export of goods and not a remote connection. 12. In the instant case, the transaction between the dealers and the exporter and the transaction between the exporter and the foreign buyer are inextricably connected and this has been clearly brought out by the Tribunal after examining t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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