SRINIVASA TRADING COMPANY Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) IN this batch of appeals common questions of facts and law arise. Hence, they are heard together and are being disposed by a common order. The particulars of the appeals are as stated hereunder:

(2.) THE question that falls for consideration in the batch of present appeals is, whether the purchases made by the appellants prior to the sale to the exporters are not liable to be taxed under the provisions of the APGST Act?

(3.) SECTION 5(3) of the Central Sales Tax Act is the relevant provision to be considered in the present batch of appeals. As per Section 5(1), sale or purchase of goods in the course of export is exempted from tax. As per Section 5(3), the last sale or purchase of any goods preceding the sale or purchase occasioning the export of those goods shall be deemed to be in the course of such export, if such last sale or purchase takes place after and was for the purpose of complying with, the agreement or order for or in relation to such export. Therefore, undisputedly, the sale or purchase preceding the sale or purchase for the purpose of export also gets exempted from tax. In the present cases, there is no dispute by the assessing authorities that the sales by the appellants to the exporters took place after, and was for the purpose of complying with the agreement or order for or in relation to such exports.