A sale is considered "in the course of export" under Section 5(1) of the CST Act if the export is the result of the sale and the two are inextricably linked, such that the export cannot be dissociated from the sale without breaching the obligation.

(Special Original Jurisdiction)

Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased toto issue an appropriate writ, order or direction particularly in the nature of Writ of Certiorari by calling for the entire connected records relating to the impugned order dated 28-06-2019 in CCT's Ref. No. L-I1(1)/299/2019 vide Annexure-P I issued by the Additional Commissioner of CT (Legal), Andhra Pradesh, Edupugallu by holding bat levy of tax on the goods sold in the course of export and already acknowledged and appropriated by the foreign buyer M/s. P L Thomas and Co., INC, New Jersey, USA under the provisions of CST Act 1956 as illegal, arbitrary, capricious, without jurisdiction, without authority of law as also violative of articles 286 and 265 with sequel effect on articles 19 (1)(g) of the Constitution of India.

IA NO: 1 OF 2019

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of the impugned proceedings of the 2nd respondent dated 28-06-2019 in CCT's Ref. No. L¬11(1)/299/2019 as also stay the consequential proceedings of the 3rd respondent dated 03-08-2019 pending disposal of the writ petition and grant

Counsel for the Petitioner:

1. M V J K KUMAR

Counsel for the Respondent(S):

1. GP FOR COMMERCIAL TAX (AP)

Date of Reserved : 28.01.2026

Date of Pronouncement : 04.02.2026

Date of Upload : 04.02.2026

The Court made the following Order:

Heard Sri Dr. M.V.K. Murthy, learned counsel appearing on behalf of Sri M.V.J.K. Kumar, learned counsel for the petitioner and the learned Government Pleader for Commercial Tax appearing for the respondents.

2. The petitioner is a manufacturer and seller of herbal extracts and plant products. The petitioner also exports the product manufactured in its unit at Duvvada, in Visakhapatnam SEZ. The assessment of the petitioner for the year 2013-14 had been completed by the 3rd respondent, by his Order dated 06.07.2015. In this assessment order, the 3rd respondent accepted the claim of the petitioner for exemption on a turnover of Rs.120,58,52,518/-, on the ground that these were export sales. Thereafter, the 2nd respondent initiated revision proceedings which resulted in an Order of revision, dated 28.06.2019. By virtue of this order a turnover of Rs.123,49,01,931/- was sought to be taxed.

3. The 2nd respondent sought to bring the entire turnover to tax on the following grounds:-

I. The purchase orders given by the foreign buyers had not been produced and only the bills of lading and sale invoices issued by the foreign buyers were being produced. These documents would have to be rejected as the documents filed by the petitioner only prove that the sales made by the petitioner are export sales and are not in the course of export. The 2nd respondent relying upon the Judgments of the Hon’ble Supreme Court of India, in the case of Ben Gorm Nilgiri Plantations Company, Coonoor & Ors Vs. Sales Tax Officer, Special Circle, Ernakulam & Ors, 15 STC 753 as well as in the case of Burmah Shell Oil Storage and Distributing Company of India Vs. Commercial Tax Officer, 11 STC 764 (SC)

II. The 2nd respondent took the view that the sale invoice, airway bills and proof of re