IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN WEDNESDAY, THE 21ST MAY 2008 / 31ST VAISAKHA 1930 ITA.No. 58 of 2000() -------------------- ITA.779/1995 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT: ----------------- THE COMMISSIONER OF INCOME-TAX, COCHIN. BY ADV. SRI.P.K.R.MENON(SR.),SC FOR IT SRI.GEORGE K. GEORGE, SC FOR IT RESPONDENTS: ------------- M/S.UNITED CATALYSTS(INDIA) LTD., EDAYAR, BINANIPURAM. BY ADV. SRI.P.BALACHANDRAN (SR.) THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 21/05/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & V.K.MOHANAN, JJ. .................................................................... I.T. Appeal No.58 of 2000 .................................................................... Dated this the 21st day of May, 2008. JUDGMENT Ramachandran Nair, J. The question raised in the appeal filed by the revenue pertains to relief claimed on export exemption. Respondent-assessee was engaged in export of goods and they claimed export-incentive in terms of the formula provided under Section 80HHC(3) of the Income Tax Act by excluding excise duty, sales tax etc. from total turnover. The Assessing Officer re- worked the benefit by treating excise duty, sales tax etc. as part of the total turnover. The Supreme Court in COMMISSIONER OF INCOME-TAX V. LAKSHMI MACHINE WORKS reported in (2007) 290 ITR 667 held that excise duty, sales tax etc. are not part of total turnover for the purpose of Section HHC(3) of the Income Tax Act. Since the issue is squarely covered against the appellant-revenue, we dismiss the appeal following the above judgment of the Supreme Court. C.N.RAMACHANDRAN NAIR Judge V.K.MOHANAN Judge