AIR 1998 SUPREME COURT 801 ::1998 AIR SCW 519 ::1998 (1) ADSC 435 ::1998 KerLJ(Tax) 513 ::1998 ADSC 1 435 ::1998 (2) SCC 536 ::(1998) 1 Scale 256 ::1998 (1) Ker LT 379 ::1998 ( ) STI 41 ::(1998) 1 SCR 411 (SC) ::1998 (1) SCR 411 ::1998 UPTC 1 212 ::1998 (1) UPTC 218 ::1998 UPTC 1 218 ::1998 (1) Supreme 378 ::1998 (109) ITD 134 ::(1998) 1 JT 289 (SC) ::1998 (1) JT 289

Supreme Court Of India

(From : Kerala)*

Hon'ble Judge(s): S. P. Bharucha, V. N. Khare , JJ

Kerala General Sales Tax Act (15 of 1963) , S.2(xxvi), S.8(b)— (as amended by Act (6 of 1988) Turnover tax - All purchases of closing stock or goods exported outside State and held by agents - Are deemed to have attained quality of last purchase for being exigible to tax. The amendment in Explanation to S. 2(xxvi) as made with a view to alter the legal position that closing stock held outside the State will not acquire the character of last purchase till it is sold. Prior to passing of the amendment Act, non obstante clause occurring in the Explanation to S. 2(xxvi) did not permit the application of S. 8(b) of the Act; where the goods were exported outside the State, but after the amendment the width of non-obstante clause in the Explanation was narrowed down as the Explanation to S. 2(xxvi) has become subject to S. 8. What S. 8(b) lays down is that, in the case of goods on which tax is leviable only at one point in a series of sales or purchases, and such goods are exported out of the State to any place outside the territory of India or to any other State in India, the series of purchases shall be deemed to conclude at the stage of the sale or purchase effected immediately before the export of such goods. The fiction created in S. 8(b) is that, purchase of goods exported out of the State is deemed to have ben effected when the sale or purchase immediately p....