Export sales through agents treated as a factual finding, with local sales tax challenge rejected.

On appreciation of the documentary record and a tripartite agreement, the Tribunal found that the goods were sold through agents, the foreign buyers were parties to the contractual arrangement, and there was privity of contract with the foreign buyers. On that factual basis, the transactions were treated as export sales exempt from local sales tax, not as local sales. The Madras HC held that this conclusion was a finding of fact based on evidence and did not call for interference, and the tax case was dismissed, leaving the Tribunal's export-sale finding undisturbed.

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Issues: Whether the transactions in question were export sales or merely local sales liable to tax.

Analysis: The Tribunal found from the documents and the tripartite agreement that the goods were sold through agents, the foreign buyers were parties to the contractual arrangement, and the assessees had privity of contract with the foreign buyers. The conclusion that the transactions were exemptable as exports was based on appreciation of evidence and constituted findings of fact.

Conclusion: The transactions were held to be export sales through agents and not local sales.

Final Conclusion: The tax case was dismissed, leaving the Tribunal's factual finding that the sales were export transactions undisturbed.

Ratio Decidendi: A finding that transactions are export sales, reached on appreciation of documentary evidence and contractual privity, is a finding of fact not warranting interference.

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