The tea should be as per the sample approved by the foreign buyer.
The price was quoted and was said to be inclusive of STCs service charge of 1 of FOB value of the companytracted quantity and the same will be recovered from the realisation export proceeds.
Each invoice was required to companytain the necessary proportion of different grades of tea required to maintain the original samples submitted by the appellants and the appellants were required to inform the Iranian buyer as also the surveyors of the required proportions of tea each standard.
The deliveries of the tea were made to the Iranian buyer under the aforesaid companytracts.
The Iranian buyer would open an irrevocable, number transferable, number divisible and number confirmed Letter of Credit in favour of S.T.C., payable against shipping documents, including a full set of clean on board Bills of Lading issued or endorsed to the order of the opening bank in terms of the Letter of Credit.
Hence, the appeal.
1622 of 1990, where Hindustan Sheet Metal Limited is the appellant.
The appellants filed that writ petition praying for a declaration that the sale of the tea by the auction brokers to the appellants was exempt from the payment of sales tax under the provisions of Section 5 3 of the Central Sales Tax Act, 1956.
J. There are appeals from the judgments and orders of the West Bengal Taxation Tribunal to which writ petitions filed in the Calcutta High Court by the appellants were transferred.
Pursuant to the companytract between S.T.C. and the appellants, the appellants purchased from tea auctions the tea to be supplied under the aforesaid companytracts.
The Tribunal, after hearing the parties, came to the companyclusion that the sales of the tea by the auction brokers to the appellants were number exempt from the levy of sales tax under Section 5 3 .
The State Trading Corporation entered into a companytract with Government Trading Corporation of Iran unblended Assam tea were to be supplied.
The sale of the tea was by the appellants to the Iranian buyer.
WITH A. NO.
1621/90, 1622/90 J U D G M E N T BHARUCHA.
In turn, S.T.C. entered into a companytract on 4th August, 1986, with the appellants for the tea, to which a companyy of S.T.Cs companytract with the Iranian buyer was annexed.
The writ petition was transferred for hearing to the West Bengal Taxation Tribunal.
In June, 1987, the appellants received letters from the auction brokers from whom the tea was purchased which stated the auction brokers had received numberices from the respondent Sales Tax authorities requiring the appellants to pay sales tax upon the purchases of tea from the auction brokers.
The position being companymon, the facts that are referred to are the facts of C.A. No.
