Export sales through genuine agents qualify as sales in the course of export and remain exempt from sales tax.

Transactions carried out through genuine export agents, supported by books of account, invoices and related records, were treated as sales in the course of export because the documentary evidence showed that the agents were accredited for export and the commissions and incidental agency expenses were recorded accordingly. A contrary approach that ignored this evidence and treated the agents as principals was rejected. The transactions were therefore exempt from sales tax, and the Tribunal's exemption remained undisturbed.

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Issues: Whether the transactions effected by the assessee through export agents were sales in the course of export and therefore exempt from sales tax.

Analysis: The books of account, invoices and connected records showed that the dealings were carried out through accredited agents appointed specifically for export, and that commissions as well as incidental agency expenses were credited and debited in the accounts. The contrary view had proceeded by ignoring the documentary evidence and treating the agents as principals despite the record.

Conclusion: The transactions were sales in the course of export and were exempt from sales tax.

Final Conclusion: The revision petitions failed and the exemption accepted by the Tribunal stood undisturbed.

Ratio Decidendi: Where documentary evidence shows that export transactions were carried out through genuine agents and the sales were integrally connected with export, they constitute sales in the course of export and are exempt from sales tax.

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