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December 2013

State of Tamil Nadu vs. Sri Ram Packages [2012] 47 VST 59 (Mad)

By C. B. Thakar, Advocate
G. G. Goyal, Janak Vaghani, Chartered Accountants
Reading Time 1 mins
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Central Sales Tax–Deemed Export-Sale of Packing Material to Exporter-Export by Agent of Purchasing Exporter-Exempt ion Allowed-Central Sales Tax Act, 1956, section 5(3)

Facts
The Department filed a petition before the Madras High Court against the order of Tribunal allowing claim of exemption from payment of tax on sale of packing material to the exporter although actual export was made by the agent.

Held
The Tribunal has recorded findings of facts that as per the contract the person who exported yarn is an agent of the buyer and concluded the transaction as falling under the category of principal/ agency transaction and allowed the claim. The Tribunal has thus reached a finding of a fact with reference to the transaction of the assessee by way of agency sale to an exporter and there is no scope to hold otherwise. Accordingly, the petition filed by the department was dismissed.

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