Rebate for sales delivered outside Uttar Pradesh turns on actual out-of-State delivery and contractual intent to export goods.

Rebate under section 5 of the U.P. Sales Tax Act, 1948 depends on whether the contract contemplates delivery outside Uttar Pradesh and the goods are in fact actually delivered outside the State. On the stated facts, the goods were booked in Uttar Pradesh but despatched and delivered to customers outside the State in accordance with the contractual arrangement; the absence of written contracts did not alter the substance of the transactions. The sales therefore satisfied the statutory condition for delivery outside Uttar Pradesh, and the assessee was entitled to the rebate claimed.

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Issues: Whether sales of manufactured goods booked in Uttar Pradesh but delivered outside the State pursuant to despatch instructions were entitled to rebate under section 5 of the U.P. Sales Tax Act, 1948.

Analysis: Section 5 allows rebate on sales of notified manufactured goods for delivery outside Uttar Pradesh if the goods are actually so delivered. The transaction pattern showed that the goods were booked and ultimately delivered outside the State to customers of the purchasers, and the contractual arrangement necessarily contemplated such delivery. The absence of the written contracts did not alter the substance of the transactions, which were governed by the same principle earlier applied in the cited precedent: where the contract evinces an intention to export and actual delivery is made to effectuate that intention, the rebate cannot be denied.

Conclusion: The sales were for delivery outside Uttar Pradesh and satisfied the statutory condition of actual delivery outside the State; the assessee was entitled to rebate under section 5.

Final Conclusion: The appeal succeeded and the assessee obtained the tax rebate claimed on the disputed transactions.

Ratio Decidendi: For rebate under section 5 of the U.P. Sales Tax Act, 1948, the controlling test is whether the contract contemplates delivery outside the State and the goods are in fact actually delivered outside the State to give effect to that arrangement.

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