The order of the Court was made by

SMT. S. V. MARUTHI, J. - This is a tax revision case filed by the revenue against the order of the Sales Tax Appellate Tribunal in T.A. No. 690 of 1996.

2. The assessee is the Associated Cement Companies Limited. It manufactures cement. It claimed exemption on the ground of second sales on a remover of Rs. 4,53,52,996. The Commercial Tax Officer rejected the claim of the assessee. The Appellate Deputy Commissioner (C.T.) confirmed the order of the Commercial Tax Officer. On appeal to the Tribunal, the Tribunal considering the agreement between the assessee and the Hemadri Cements Limited held as follows :

"As seen from the terms of the contract the appellant had no control over the process of production and had no ownership in the goods before they were certified in inspection and delivered to it. The fact that appellant had reserved the right to reject the goods on inspection was just a privilege of the bulk purchaser. But the transaction intrinsically remains one of 'purchase' of cement by appellant from HCL. Such being the case, HCL is the first seller within the State and duly entitled for the concessional rate contemplated by the State