M M MOHIDEED THUMBY AND CO MADRAS Vs. STATE OF MADRAS

JUDGEMENT

(1.) THE assessee petitioner is a dealer in hides and skins. Befe the Sales-tax trbunal, the claim was by the assesseethat aturnover of Rs. 4,45. 125/- and odd represented export sale to foreign buyer through the medium of local agents of the foreign buyers. This contention was examined and rejected except for asmall turnover of Rs. 22,768/- After examining the several transsactions which went to make this turnover, the Tribunal came to the conclusion that in none of these cases, could it be stated that there was any transaction which involved a foreign buyer; but that on the other hand the sales were all affected to local exporting houses, the transfer of the property being completed within the state and the transaction of the export in consequence becomming wholly disassociated with the precedent sale transaction. In this revision the correctness of this conclusion of appelate Tribunal is canvassed.

(2.) MR. T. T. Srinivasan, for the assessee, confines the prsent revision petition to two turnovers resulting from transactions effected with or through (1) Messers beardsell and Co.--Rs. 1,90,638-13-8 and (2) Rallis India Ltd.--Rs. 52,074-4-0. The claim with regard to the balance of the turover which was in dispute before the Tribunal has been given up before us principally for the reason that the assessee is not able to produce any documents connected with those transactions which would support the contention now put forward. We according proceed to examine the assessee with the above two firms.

(3.) THE arguments have been placed under two heads. Firstly it is caimed that the exporting houses acted as the agents of the assessees and that the sale effected was one direct by the assessee to the foreign buyer. If this basis can be established, there is no doubt that the subsequent export would form part of the transaction of the previous sale which necessarily led to the export of the goods. Such a sale would be exempt from levy of sales-tax by the state. It follows therefore, that the contract and the nature of the transaction following the contract have to be examined in order to see whether there was any incident in the course of the transaction a direct sale to a foreign buyer.