Export-linked sales tax exemption depends on physical delivery outside the State, not mere transfer of documents of title.

Sales tax exemption for tea exported outside the State turned on the meaning of "delivery" in section 5(v) of the Madras General Sales Tax Act. Although property passed in Madras when documents of title were delivered to the buyer's bank, the text reads the exemption purposively in light of its export-promoting object. On that approach, "delivery" is confined to actual physical delivery of the tea outside the State and does not include delivery in law by transfer of documents of title. Sales satisfying that requirement were treated as exempt from tax.

---

---

Issues: Whether sales of tea were exempt from sales tax under section 5(v) of the Madras General Sales Tax Act when the documents of title were delivered in Madras but the tea itself was delivered in foreign ports.

Analysis: The sales were effected under contracts contemplating shipment for delivery outside the State, with property passing at Madras on delivery of the documents to the bank acting for the buyer. Under section 33 of the Sale of Goods Act, 1930, delivery may be made by any act which has the effect of putting the goods in the possession of the buyer or a person authorised to hold them on his behalf, and delivery in law was therefore possible. The decisive question was the meaning of "delivery" in section 5(v). Reading the exemption in light of its object of promoting exports, the word could not be confined to documentary or constructive delivery, because that would defeat the legislative purpose and create unequal treatment between similar export sales depending only on the place where documents were handed over.

Conclusion: The word "delivery" in section 5(v) means physical delivery of the tea outside the State, not delivery by documents of title, and the sales were exempt from taxation.

Ratio Decidendi: For an export-oriented sales tax exemption framed in terms of delivery outside the State, "delivery" is confined to actual physical delivery of the goods and does not include delivery in law by transfer of documents of title.

---