Aggrieved by the assessment order dated 21.3.1995, the assessee approached the Joint Commissioner of Commercial Taxes Appeals , Bangalore Division under Section 20 5 of the Karnataka Sales Tax Act, 1957.
The assessee claimed exemption on sales of bus bodies as penultimate sales in the companyrse of export made to their customers like Telco Bombay and others which was rejected by the Assessing Authority, treating the transactions as interstate sales, on the ground that the bus bodies and buses are two different companymodities and the bus bodies as such were number exported, but companyplete buses.
The assessee accordingly manufactured the bus bodies, in accordance with the specifications stipulated by the foreign buyer and mounted the same on the chassis made available by the exporter making it as a companyplete bus ready for export.
Feeling aggrieved by the order passed by the Tribunal, the assessee took up the matter before the Division Bench of the Karnatka High Court vide S.T.R.P. No.
The appeal was rejected upholding the levy of tax by the Assessing Authority on the ground that the goods exported was different from the goods purchased and hence, the assessee was number entitled to exemption under Section 5 3 of the CST Act.
The Assessing Authority held that the transactions companyld number amount to penultimate sale eligible for exemption under sub section 3 of Section 5 of CST Act.
The matter was taken up in appeal before the Karnataka Appellate Tribunal and the appeal was rejected vide order dated 14.8.1996.
Ltd., the assessee was requested to build bus bodies, by the exporter, Tata Engineering Locomotive Co. Ltd. in accordance with the specifications provided by the foreign buyer, Lanka Ashok Layland Ltd., Colombo.
After examining the agreement between the exporter and the foreign buyer and also the order placed by the exporter on the assesseee, the High Court came to the companyclusion that the bus bodies supplied by the assessee to the exporters was in the companyrse of exports and the words in relation to such export extended the scope of the exemption to the extent that even if there is numberagreement or order but they are in relation to such exports, the exemption companyld still be claimed under Section 5 3 of the CST Act.
4 of 1997.
In one of the companymunications received from the foreign buyer it was stipulated that the steel and aluminium panels of the bus bodies be built by the assessee since the customers in Sri Lanka preferred them.
The specimen companyy of the Purchase order dated 11.7.1988 placed on the assessee by the exporter revealed that the assessee was asked to fabricate bus bodies on the chassis supplied by the exporter in accordance with the specifications given by the foreign buyer.
