- (1.) THE appellant-assessee claimed before the assessing officer that the disputed turnovers for the relevant periods were the turnovers of export sales and as such were not liable to sales tax under the Tamil Nadu General Sales Tax Act, 1959.
(2.) THE assessing authority rejected the claim. However, on appeal preferred by the assessee the Appellate Assistant Commissioner held that the local exporting houses who exported the goods of the assessee, did so only on behalf of the assessee and as such the respective turnovers being export sales were eligible for exemption. The Board of Revenue took suo motu notice of the matter and reversed the findings of the Appellate Assistant Commissioner and came to the conclusion that the appellant-assessee was selling its goods to the two export houses who were further exporting the same. The High Court upheld the findings of the Board of Revenue on the following reasoning : " The Board of Revenue in its order has pointed out that none of the correspondence showed that the local exporters acted as the agents of the appellant herein. The correctness of this statement is not specifically challenged in the grounds of appeal preferred to this court. Apart from this, it is admitted by the learned counsel for the appellants themselves that, in the correspondence that passed between the local exporting houses and the foreign buyers, there is absolutely nothing to show that the local exporting houses were acting as the agents of somebody else and that they were not dealing with their own goods by way of selling them to the foreign buyers. We are of the opinion that, on this admission, the sales in question must be held to be liable to sales tax, because it must be deemed that there was local sale by the appellant to the exporting houses in order to enable the exporting houses to effect a sale in their own right in favour of the foreign buyers. "
(3.) WE see no infirmity in the order of the High Court. We agree with the reasoning and the conclusions reached therein. The appeal is dismissed. No costs.;