2023 (1) TMI 144

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..... /2016 passed by the Karnataka Appellate Tribunal, Bengaluru ('KAT' for short) has been admitted to consider either of the following two questions: Whether Tribunal was right in disallowing the exemption under Section 5(2) of the CST Act to the extent of Rs.16,51,67,363/-, which represented high sea sales by the appellant-assessee on the ground that same was not supported by documentary evidence? OR Whether Tribunal was right in disallowing the exemption under Section 5(2) of the CST Act to the extent of Rs.16,51,67,363/-, which represented high sea sales despite assessee having tendered evidence before the authorities as regards said sales, which had been accepted by said authorities." 2. Heard Shri. T. Suryanarayana, learned .....

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..... was no endorsement by the assessee on Bill of Lading. He argued that having so recorded, the KAT held a roving enquiry into the documents, which included an Intelligent Report by the Enforcement Officer and limited the exemption to Rs.1,65,32,500/- on the ground that documents were available only to that extent. 6. In substance, Shri. Suryanarayana's argument is that the KAT has exceeded its jurisdiction in holding a roving enquiry by considering irrelevant material in limiting the relief. 7. Shri. Jeevan Neeralgi, learned AGA for the Revenue, adverting to para 26 of the impugned order submitted that the agreement was not signed by the proper person overseas. Therefore, the KAT having considered the material on record, has rightly li .....

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..... al, are limited to the subject-matter of the appeal." 12. Admittedly, the appeal before the KAT was filed by the assessee. The question for consideration is, whether exemption could be denied for want of assessee's endorsement on the Bill of Lading? 13. In our view, the KAT has rightly noted the correct position of law that Bill of lading is not the only way of transfer of title and it can also be done by even handing over the Bill of Lading to the customers. Further, on consideration of the Intelligence Report, KAT has satisfied itself that documents were available in respect of turnover of Rs.1,65,32,500/-. Denial of the exemption in respect of turnover of Rs.16,51,67,363/- being the remaining portion of the turnover was not the sub .....

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