The Karnataka High Court while remanding the matter back to the CST Departmentheld that a Transaction shall be treated as “Sale in the course of Export” if Excise pass has any inextricable link with the Export.
The petitioner-assessee, Parle Products is a manufacturer and dealer of consumer goods under provisions of the Karnataka Value Added Tax Act, 2003 and the Central Sales Tax Act, 1956. The returns in Form VAT 100 were filed by the assessee for the period under consideration i.e., 2005-06 to 2008-09. The Assistant Commissioner of Commercial Taxes (Assessing Authority) re-assessed the returns and disallowed the exemption claimed under Section 5(1) of CST Act on the ground that the petitioner had effected stock transfer and not a sale in the course of export. Being aggrieved, the petitioner preferred appeals before the First Appellate Authority who dismissed the appeals. Pursuant to which appeals were preferred before the Tribunal. The Tribunal by order dated 18.07.2011 set aside the order of the First Appellate Authority and remanded the matter back to the First Appellate Authority. The said appeals having been partly allowed, the petitioner preferred appeals before the Tribunal unsuccessfully. The review petition preferred by the assessee also came to be dismissed.
The petitioner submitted that the Assessing Authority rejected the claim of the petitioner on the ground that the goods had moved from Bangalore to Mumbai and the export invoices would depict that the goods were exported from Maharashtra. However, no F-Forms were filed by the assessee for the stock transfer effected from Karnataka branch office to the head office situated at Maharashtra, from where the goods are said to have been exported and has not proved that only those goods stock transferred for the purpose of export are exported.
The division bench of Justice S.Sujatha and Justice Vishvajith Shetty has held that The matter requires to be re-examined by the Tribunal in the light of the judgments referred to above vis-à-vis the documents produced before this Court. If the Excise pass has any inextricable link with the export, certainly the transaction would come within the purview of Section 5(1) of CST Act. In other words, the movement of goods causes such exports. These aspects require to be verified by the Tribunal considering the material evidence placed on record by the assessee. Hence, the matter has to be restored to the file of the Tribunal sans answering the questions of law.
PARLE PRODUCTS PVT. LTD. vs THE STATE OF KARNATAKA
CITATION: 2022 TAXSCAN (HC) 199
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