September 2012
V. Win Garments v. Additional Deputy Commercial Tax Officer, Tirupur, [2011] 42 VST 330 (Mad).
By C. B. Thakar, Advocate
G. G. Goyal, Janak Vaghani, Chartered Accountants
Reading Time 2 mins
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Central Sales Tax – Sales to the exporter –
Against Form H – Production of agreement with foreign buyer – Not
mandatory – Section 5 (3) of the Central Sales Tax Act, 1956.
Facts
The
dealer claimed exemption from payment of tax u/s 5(3) of the CST Act in
respect of sale of goods to the exporter against Form H and produced
the Form H and copy of bill of lading before the assessing authorities.
The assessing authorities denied the exemption claimed by the dealer for
want of production of agreement of export with the foreign buyer. The
dealer filed writ petition before the Madras High Court against such
order passed by the lower authorities.
Held
In order
to claim exemption from payment of tax u/s 5(3) of the CST Act, what is
required by the dealer to prove the factum of the transaction and once
he is able to do so with sufficient and satisfactory documents, the
value of the same is exempted from tax liability. No rule lays it
mandatory to produce the agreement with foreign buyers. The High Court
accordingly allowed the writ petition filed by the dealer and remanded
back the matter to assessing authority to decide the matter afresh in
the light of form H and other documents already available on record and
fresh document, if any, produced by the petitioner and after giving him
the opportunity of being heard.
