Export exemption under CST depends on post-frontier transfer of title; absence of proof leaves turnover taxable.

Section 5(1) of the Central Sales Tax Act, 1956 is explained as requiring proof that a sale in the course of export either occasions the export or involves transfer of documents of title only after the goods cross the customs frontiers of India. The text also notes that a later Supreme Court construction of "customs frontiers" made the earlier dismissal order unsustainable in review, because the broader territorial meaning had not been considered. On the stated facts, the assessee failed to show that the statutory condition for export exemption was met, so the disputed turnover remained taxable.

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Issues: (i) Whether the earlier order dismissing the tax revision required review in view of the Supreme Court's construction of "customs frontiers". (ii) Whether the turnover from the impugned sales was liable to be included in the taxable turnover under section 5(1) of the Central Sales Tax Act, 1956.

Issue (i): The review was sought on the footing that the earlier order had proceeded on an incorrect understanding of the expression "customs frontiers" in section 5(1) of the Central Sales Tax Act, 1956. The later decision of the Supreme Court, which had not been considered earlier, showed that the expression could not be confined to the customs barrier and had to be understood with reference to the broader territorial limits indicated by the relevant notification and proclamation. The omission to consider that binding construction made the earlier order unsustainable.

Conclusion: The earlier order was liable to be set aside in review.

Issue (ii): Under section 5(1) of the Central Sales Tax Act, 1956, a sale is in the course of export only where it occasions the export or is effected by transfer of documents of title after the goods have crossed the customs frontiers of India. On the facts, there was no evidence that the property in the goods passed after the goods had crossed the customs frontiers as so construed. In the absence of proof of that statutory requirement, the turnover could not be excluded from assessment.

Conclusion: The turnover was liable to be included in the taxable turnover and the assessee's contention failed.

Final Conclusion: The review succeeded, the earlier order was recalled, and the revision was ultimately decided against the assessee on the question of export exemption, with the disputed turnover held taxable.

Ratio Decidendi: For a sale to fall within the second limb of section 5(1) of the Central Sales Tax Act, 1956, the assessee must establish that the transfer of documents of title occurred only after the goods had crossed the customs frontiers of India as legally construed; failure to prove that statutory condition leaves the turnover taxable.

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