State of Andhra Pradesh Vs. Standard Packings

State of Andhra Pradesh vs Standard Packings

Type Court Judgment Court Andhra Pradesh Decided Jul 12, 1994

~2 min read

https://sooperkanoon.com/case/433341

For advocates & juniors · 7-day free trial

Brief this judgment before chambers

Stop skimming 50 pages - get an 18-section AI Brief on this case, ask scoped follow-ups, and find related precedents with Semantic Search. Full trial, no card required.

18-section brief - facts, issues, ratio, relief
Ask this case - answers cite the judgment
Semantic search - find precedents by meaning
Research drawer - sections, cites, related cases

Citation: sooperkanoon.com/433341
Court: Andhra Pradesh High Court
Judge: B.S. Raikote and ;S.S. Mohammed Quadri, JJ.
Decided On: Jul 12, 1994
Case Number: T.R.C. No. 37 of 1986
Subject: Sales Tax

Case Summary

AI-generated summary - not the official court judgment text.

Sales Tax - exemption - Sections 5 and 5 (3) of Central Sales Tax Act, 1956 - assessee sold jute bags to another dealer who used them as containers for export of certain goods to foreign country - assessee claimed exemption under Section 5 (3) - both condition of Section 5 (3) satisfied - held, exemption granted. ...

Key legal issue: Sales Tax
Acts & sections: Central Sales Tax Act, 1956 - Sections 5 and 5(3)

Parties & Advocates

Appellant / Petitioner

State of Andhra Pradesh

Advocate Government Pleader for Commercial Tax

Respondent

Standard Packings

Advocate K. Raji Reddy, Adv.

Legal References

Acts: Central Sales Tax Act, 1956 - Sections 5 and 5(3)
Reported In: [1995]96STC151(AP)

Excerpt

.....jute bags to another dealer who used them as containers for export of certain goods to foreign country - assessee claimed exemption under section 5 (3) - both condition of section 5 (3) satisfied - held, exemption granted. - all india services act, 1951.sections 8 & 11 & a.p. buildings (lease, rent and eviction) control rules, 1961, rule 5: [v.v.s. rao, g. yethirajulu & g. bhavani prasad, jj] refusal by landlord to receive rent - deposit of rent in court - held, a tenant has the option to take recourse to section 8 in case of refusal or evasion by landlord to receive rent and if landlord were to not name a bank or refuse even the money order of rent, the tenant can deposit the rent in accordance with sub-rules (1) to (3) of rule 5. the notice to person entitled to rent and proper maintenance of accounts of such deposits under sub-rules (4) and (5) of rule 5 are solely dependent on compliance with sub-rule (3) by the tenant. the payment or deposit of rent under section 11 read with sub-rule (6) of rule 5 arises only in respect of a tenant who did not take recourse to section 8 or section 9 before an application for eviction has been made against him in respect of any rent in arrears by date of that application, whereas in respect of rent that becomes subsequently due since date of application for eviction, the tenant is bound to pay or deposit regularly until termination of proceedings in order to enable him to contest the application. any violation of section 11(1) to (3) and sub-rule (6) of rule 5 makes the tenant liable for the adverse consequences under sub-section (4) of section 11. thus, the provisions of section 11 and sub-rule (6) of rule 5 are intended only to ensure the payment and deposit of rent including arrears during pendency and till termination of proceedings for eviction. the forfeiture of right of tenant to contest in case of default is to protect the rights and interests of landlord pending such an application for eviction, but not to..........act. the assessment relates to the assessment year 1981-82. section 5(3) of the act, as amended and applicable for the assessment year 1981-82, reads as follows : 'notwithstanding 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.' 3. to invoke the said sub-section, 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 should be for the purposes of : (1) export and (2) the sale must have been for the purpose of complying with the agreement or order. 4. the tribunal, considering the facts of the case, recorded the finding that both conditions required to be fulfilled to attract sub-section (3) of section 5 of the act are present in the instant case. in view of that finding, it allowed the appeal and set aside the order of assessment in respect of the disputed turnover. we do not find any illegality in the order of the tribunal. 5. the tax revision case is accordingly dismissed. no costs. 6. petition dismissed.

Full Judgment

Syed Shah Mohammed Quadri, J.

1. The assessee is a manufacturer of jute bags. The bags were sold to mine owners for export of barytes powder. Pursuant to the order of supply the exporter wanted the export the barytes powder in bags to a company in Kuwait. The assessee claimed exemption under section 5(3) of the Central Sales Tax Act, 1956 (for short 'the Act'). The assessing authority rejected the contention. The Appellate Tribunal accepted the contention and set aside the order of assessment on October 10, 1984, in appeal, T.A. No. 22 of 1984.

2. The question that falls for consideration in this tax revision case is whether the sale of gunny bags of the assessee to another dealer, who use them as containers for export of certain goods to a foreign country, shall be deemed to be an export sale within the meaning of section 5 of the Act. The assessment relates to the assessment year 1981-82. Section 5(3) of the Act, as amended and applicable for the assessment year 1981-82, reads as follows :

'Notwithstanding 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.'

3. To invoke the said sub-section, 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 should be for the purposes of : (1) export and (2) the sale must have been for the purpose of complying with the agreement or order.

4. The Tribunal, considering the facts of the case, recorded the finding that both conditions required to be fulfilled to attract sub-section (3) of section 5 of the Act are present in the instant case. In view of that finding, it allowed the appeal and set aside the order of assessment in respect of the disputed turnover. We do not find any illegality in the order of the Tribunal.

5. The tax revision case is accordingly dismissed. No costs.

6. Petition dismissed.

Same Court & Year Andhra Pradesh · 1994 Same Parties State of Andhra Pradesh vs Standard Packings Same Subject Sales Tax Same Judge B.S. Raikote and ;S.S. Mohammed Quadri, JJ. Acts & Sections Central Sales Tax Act, 1956 - Sections 5 and 5(3)

Sales Tax