Sales tax rebate failed where the contract was completed in-state and later despatch instructions did not change the sale's location.

Rebate under section 5 of the U.P. Sales Tax Act was unavailable because the sales were not shown to be sales for delivery outside Uttar Pradesh. The contract was completed at Modinagar when the goods were loaded in wagons and property passed there; later despatch directions from the purchaser only governed post-sale movement and did not form part of the sale contract. On that basis, the statutory condition for rebate was not met, and the turnover remained taxable within the State.

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Issues: Whether the sales on which rebate was claimed under section 5 of the U.P. Sales Tax Act were sales for delivery outside Uttar Pradesh.

Analysis: The terms of the correspondence and the surrounding circumstances showed that the contract of sale was complete at Modinagar when the goods were loaded in wagons and the property passed there. The later despatch instructions given by the purchaser related only to the destination of movement after the sale had been completed and did not form part of the contract of sale. Since the sales were not shown to be sales for delivery outside Uttar Pradesh, the statutory condition for rebate was not satisfied.

Conclusion: The issue was decided against the assessee and in favour of the Revenue.

Final Conclusion: Rebate under section 5 was not admissible on the disputed turnover because the sales were treated as completed at Modinagar and not as sales for delivery outside Uttar Pradesh.

Ratio Decidendi: For rebate under section 5 of the U.P. Sales Tax Act, the assessee must establish that the contract of sale itself was for delivery outside the State and that the statutory condition cannot be met merely because the goods were later despatched outside the State under post-sale instructions.

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