EXCISE RELIEF FOR UNITS SUPPLYING GOODS TO EXPORTERS
The penultimate sale before export will be exempt from central sales tax if it is "inextricably"
connected with the export of goods, a Constitution bench of the SC ruled. This judgment in, State of
Karnataka vs Azad Coach Builders Ltd, will benefit ancillary industries catering to exporters.
In this case, Azad Coach Builders was requested to build bus bodies by the exporter, Tata
Engineering Locomotive Co, in accordance with the specifications provided by the foreign buyer,
Lanka Ashok Leyland Ltd, Colombo. Azad built bodies on the chassis made by Telco. It claimed
exemption from sales tax as it was a penultimate operation exempted from duty. The revenue
authorities rejected the claim.
connected with the export of goods, a Constitution bench of the SC ruled. This judgment in, State of
Karnataka vs Azad Coach Builders Ltd, will benefit ancillary industries catering to exporters.
In this case, Azad Coach Builders was requested to build bus bodies by the exporter, Tata
Engineering Locomotive Co, in accordance with the specifications provided by the foreign buyer,
Lanka Ashok Leyland Ltd, Colombo. Azad built bodies on the chassis made by Telco. It claimed
exemption from sales tax as it was a penultimate operation exempted from duty. The revenue
authorities rejected the claim.
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