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The State of Tamil Nadu Vs. Roy AmIn and Company Pvt. Ltd. - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtChennai High Court
Decided On
Case NumberTax Case No. 347 of 1969 (Revision No. 222 of 1969)
Judge
Reported in[1974]33STC586(Mad)
AppellantThe State of Tamil Nadu
RespondentRoy AmIn and Company Pvt. Ltd.
Appellant AdvocateK. Venkataswami, The First Assistant Government Pleader
Respondent AdvocateC. Venkataraman, Adv. of C.S. Chandrasekara Sastri, ;C. Venkataraman ;and C. Natarajan, Advs.
DispositionPetition dismissed
Excerpt:
- - but after going through the correspondence and other materials found from the records, we are satisfied that the finding rendered by the tribunal cannot be taken exception to......in this case imported certain chemicals and after taking delivery of the same supplied them to a local buyer- m/s. addison paints and chemicals limited, madras -- for a sum of rs. 49,590 during the assessment year 1961-62. according to the assessee the said sum is the turnover of sale in the course of import, but according to the revenue it represents the turnover of a sale after import. for deciding whether the sale in question is actually in the course of import or whether it is a sale after import it is necessary to see the nature of the transactions from the relevant contracts and the correspondence between the assessee and the local buyer. the tribunal has specifically found on a due consideration of all the materials and the correspondence between the assessee and its buyer that.....
Judgment:

Ramanujam, J.

1. The only question that is involved in this case is as to whether the turnover of Rs. 49,590 represented a sale effected by the assessee-company in the course of import or whether it represents a sale after import. The assessee in this case imported certain chemicals and after taking delivery of the same supplied them to a local buyer- M/s. Addison Paints and Chemicals Limited, Madras -- for a sum of Rs. 49,590 during the assessment year 1961-62. According to the assessee the said sum is the turnover of sale in the course of import, but according to the revenue it represents the turnover of a sale after import. For deciding whether the sale in question is actually in the course of import or whether it is a sale after import it is necessary to see the nature of the transactions from the relevant contracts and the correspondence between the assessee and the local buyer. The Tribunal has specifically found on a due consideration of all the materials and the correspondence between the assessee and its buyer that the local buyer placed an order with the assessee for the supply of 10 tons of chemicals on 3rd November, 1961, that on the basis of the order placed by the local buyer the assessee who had a licence to import the chemicals imported the same through Burmah-Shell and delivered the entire consignment to the local buyer after clearing the ship. On these facts, the Tribunal held that the import of the chemicals by the assessee has been occasioned by the order placed by the local buyer and that, therefore, the sale by the assessee to the local buyer is a sale in the course of import as per Section 5 of the Central Sales Tax Act. This view of the Tribunal is challenged by the revenue.

2. We are of the view that on the facts found by the Tribunal that the import of the chemicals in question has been occasioned by the order placed by the local buyer, the conclusion is inescapable that the sale by the assessee to the local buyer of the same consignment of chemicals is a sale in the course of import. The learned Government Pleader seeks to question the finding of the Tribunal that the order placed by the local buyer on the assessee preceded the import. But after going through the correspondence and other materials found from the records, we are satisfied that the finding rendered by the Tribunal cannot be taken exception to. The tax case is, therefore, dismissed with costs. Counsel's fee Rs. 150.


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