Rebate under sales tax law turns on delivery outside the State, while a rebate refusal is not separately appealable.

An order merely refusing rebate under the U.P. Sales Tax Act was not treated as an assessment order and was therefore not independently appealable; the refusal could be challenged only in an appeal from the final assessment. On the rebate question, entitlement depended on whether the sale was for delivery outside Uttar Pradesh and whether the goods were actually delivered outside the State. The buyer's residence or place of business was irrelevant. As the goods were despatched to and delivered at Gaya outside Uttar Pradesh in accordance with the sale arrangement, the statutory conditions for rebate were satisfied.

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Issues: (i) Whether an order refusing rebate under section 5 of the U.P. Sales Tax Act is an assessment order appealable under section 9 of that Act; (ii) whether rebate under section 5 depends on the buyer's residence or place of business, or instead on whether the sale was for delivery outside Uttar Pradesh and the goods were actually delivered outside Uttar Pradesh.

Issue (i): Whether an order refusing rebate under section 5 of the U.P. Sales Tax Act is an assessment order appealable under section 9 of that Act.

Analysis: The right of appeal under section 9 was confined to orders of assessment. An order merely declining to grant rebate under section 5 was not itself an assessment order. Such a refusal could be questioned in an appeal from the final assessment order, but not by a direct appeal against the rebate-refusal order.

Conclusion: The order refusing rebate was not appealable under section 9, and the answer was against the assessee.

Issue (ii): Whether rebate under section 5 depends on the buyer's residence or place of business, or instead on whether the sale was for delivery outside Uttar Pradesh and the goods were actually delivered outside Uttar Pradesh.

Analysis: The governing test under section 5 was whether the sale was for delivery outside Uttar Pradesh and whether the goods were actually delivered outside Uttar Pradesh. The buyer's residence or place of business was irrelevant. On the facts found, the goods were despatched to and delivered at Gaya outside Uttar Pradesh, and the sales were for delivery there. The assessee therefore satisfied the statutory condition for rebate.

Conclusion: The assessee was entitled to rebate under section 5, and the answer was in favour of the assessee.

Final Conclusion: The reference was answered by holding that the rebate-refusal order was not independently appealable, but the assessee was entitled to the rebate on the merits because the sales were for delivery outside Uttar Pradesh and the goods were actually delivered outside the State.

Ratio Decidendi: Under section 5 of the U.P. Sales Tax Act, rebate depends on delivery outside the State and actual delivery in accordance with that arrangement, not on the buyer's residence or business location; an order merely refusing rebate is not itself an appealable assessment order under section 9.

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