Sales in the course of import exemption upheld where imports were tied to actual user licences and named buyers.

Sales of imported printing machines, parts and accessories against actual user licences and letters of authority were treated as sales in the course of import because the goods were ordered only subject to production of those documents, the import papers identified the particular actual user, and delivery was restricted to that customer. On those facts, the import could not be diverted to another purchaser, and the assessees were regarded as acting not only for the foreign seller but also on behalf of the actual user. The Tribunal's application of the governing principle was upheld, and the exemption from sales tax, surcharge and additional sales tax was maintained.

---

---

Issues: Whether the sales of imported printing machines, parts and accessories made against the buyers' actual user licences and letters of authority constituted sales in the course of import and were therefore exempt from sales tax, surcharge and additional sales tax.

Analysis: The goods were ordered only on condition that the buyers produced actual user licences and letters of authority, the import documents identified the particular actual user, and the goods were required to be delivered to that identified customer. On these facts, the import was not open to diversion to any other purchaser. The assessees were found to be acting not merely for the foreign seller but also on behalf of the actual user, so the Tribunal's application of the governing principle was held to be correct.

Conclusion: The sales were correctly treated as sales in the course of import, and the exemption granted by the Tribunal was upheld in favour of the assessee.

---