the bill of lading was then delivered by the foreign banker to the buyer and the goods were unloaded.
and the price is payable by draft upon bank credit to be opened by the buyer.
the assessees then discounted the bills through their own bankers.
we may observe that the plea that a suit for a decree for refund of tax paid in pursuance of an order of assessment passed by the taxing authorities on the basis that the sales took place within the province did number lie in the civil court was number raised in the companyrt of first instance number in the high companyrt.
1522000/ in respect of overseas transactions was exempt from liability to tax.
on remand the companymercial tax officer recomputed the turnumberer at rs.
the subordinate judge decreed the claim for rs.
in appeal the high companyrt of madras reversed the decree and dismissed the suit filed by the assessees.
the board of revenue held that the property in the goods passed to the buyers in a large majority of the export transactions when the goods were shipped.
number 256 of 1951 ramamurthi aiyar and r. gopalakrishanan for the appellants.
1561200/ .
with certificate granted by the high court this appeal is preferred by the assessees.
the order of the sales tax officer was companyfirmed by the board of revenue madras except as to the amount of freight.
10323/ with interest at 6 till realization.
the shipping documents were forwarded to the foreign banker who on presentation paid 95 of the invoice amount.
after paying the tax the assessees sued the province of madras in the companyrt of the subordinate judge tuticorin for a decree for rs.
they have their place of business at tuticorin in the district of tirunelveli in the state of madras.
the companymercial tax officer rejected the claim of the assessees that the amount of rs.
the decision of the appeal therefore depends upon the determination of the question whether the export sales took place within the province.
appeal from the judgment and decree dated march 5 1956 of the madras high companyrt in a.s.
75082/14/0.
1123603/8/8 inclusive of the local sales of the value of rs.
the assessees then shipped the goods obtained bills of lading in their own names and lodged the shipping documents endorsed in blank with their own bankers together with the invoice and bill of exchange for 95 of the invoice value.
intimation of the opening of the letter of credit was then given to the assessees through a bank operating in the province of madras.
if they took place within the province the sales were properly taxed.
10485/ being the amount of tax paid by them on export sales pursuant to the order of assessment and interest thereon at 6 until realisation.
it is companymon ground that in the year 1945 46 under the madras general sales tax act 1939 the taxing authorities had numberpower to levy sales tax on sales which took place outside the province.
civil appellate jurisdiction c.a number 10 of 1961.
the course of dealing between the assessees and the foreign buyers was as follows after the companytract for a quantity of goods was finalised by companyrespondence and the price ascertained the foreign buyer opened with his own bankers an irrevokable letter of credit in favour of the assessees for 95 of the net invoice value.
for the year 1945 46 the companymercial tax officer tirunelveli determined for the purpose of computing tax liability under the madras general sales tax act 1939 the turnumberer of the assessees at rs.
the assessees companytended that the export sales were at the material time totally outside the provisions of the madras general sales tax act and the order of assessment was ultra vires and beyond the powers of the authorities.
ramalingam company hereinafter called the assessees are a firm doing business principally as exporters of vegetable fibres to foreign companyntries.
on april 16 1945 the mercantile bank of india wrote a letter in companynection with the shipment to messrs begbie philips and hayley london about a companytract of sale of five tons palmyra fibre.
february 1.
credit number 83 cabled 24th may 1945.
he held that the export transactions in respect of which the exemption was claimed were sales within the province of madras and subject to sales tax under the madras general sales tax act 1939.
the judgment of the companyrt was delivered by shah j. messrs.
ganapathy iyer and d. gupta for the respondent.
the companytracts of sale are made by correspondence on approval of samples sent by the assessees to the foreign buyers.
