Export sale exemption denied where local sales to an intermediary did not directly occasion the overseas export contract.

Sales to an intermediary were held not to qualify as sales in the course of export where there was no privity of contract between the seller and the foreign buyers. The export was directly occasioned by the contract between the State Trading Corporation and the overseas purchasers, not by the assessee's earlier sale to the intermediary. On those facts, the earlier transactions were distinct local sales and did not themselves occasion export, so exemption under section 5 of the Central Sales Tax Act was unavailable.

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Issues: Whether sales worth Rs. 20,907 were sales in the course of export and therefore exempt under section 5 of the Central Sales Tax Act.

Analysis: The assessee sold shoes to an intermediary under a contract of sale, while the State Trading Corporation was the exporter under the contract with the foreign buyers. There was no privity of contract between the assessee and the foreign buyers. The immediate and direct cause of the export was the contract between the exporter and the foreign buyers, and not the preceding contract between the assessee and the intermediary. On the facts, the preceding transactions were distinct local sales and did not themselves occasion the export.

Conclusion: The sales of Rs. 20,907 were not sales in the course of export and the assessee was not entitled to exemption.

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