Sale in the course of import applies where goods are imported to fulfil a pre-existing buyer's order.

Turnover from the sale of imported chemicals to a local buyer was held to be a sale in the course of import under section 5 of the Central Sales Tax Act because the buyer's order preceded the import and the goods were imported to satisfy that order. On the Tribunal's findings from correspondence and surrounding materials, the same consignment retained a direct nexus with the import transaction even after clearance of the ship, so the sale was not treated as a post-import local sale. The revenue's challenge failed, leaving intact the finding that the disputed turnover was not exigible to tax as a local sale.

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Issues: Whether the turnover from the sale of imported chemicals to the local buyer was a sale in the course of import within the meaning of section 5 of the Central Sales Tax Act.

Analysis: The Tribunal had found, on the correspondence and surrounding materials, that the local buyer's order preceded the import and that the import was made to fulfil that order. On those facts, the sale of the same consignment after clearance of the ship retained the requisite nexus with the import transaction.

Conclusion: The turnover was rightly treated as a sale in the course of import and the revenue's challenge failed.

Final Conclusion: The dismissal of the tax case left intact the finding that the disputed turnover was not exigible as a post-import sale.

Ratio Decidendi: Where the import of goods is occasioned by a pre-existing buyer's order and the same consignment is supplied to fulfil that order, the sale is a sale in the course of import under section 5 of the Central Sales Tax Act.

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