Section 5(3) export exemption requires examination of pre-existing contract and proof before rejecting the claim.

A claim for exemption under section 5(3) of the Central Sales Tax Act could not be finally rejected without examining whether the export was made in pursuance of a pre-existing contract. The assessment and appellate authorities had focused on the absence of bill of lading and Form H, but had not determined the foundational export requirement or allowed the assessee to prove that the State Trading Corporation export was contract-based. The matter was therefore remanded to the Tribunal for fresh decision after hearing the assessee.

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Issues: Whether the assessee was entitled to exemption on the molasses sales under section 5(3) of the Central Sales Tax Act and whether the matter required fresh consideration on the question of actual export in pursuance of a pre-existing contract.

Analysis: The assessment and appellate orders had proceeded mainly on the absence of bill of lading and form H, without examining whether the export was made pursuant to a pre-existing contract so as to fall within section 5(3). The Tribunal had also not afforded the assessee an opportunity to establish that the export through the State Trading Corporation was in pursuance of such a contract. Since the foundational question for exemption had not been examined, the matter required reconsideration after hearing the assessee.

Conclusion: The revision was allowed, the Tribunal's order was quashed, and the matter was remanded to the Tribunal for fresh decision on the exemption claim after giving the assessee an opportunity to be heard.

Ratio Decidendi: A claim for exemption under section 5(3) of the Central Sales Tax Act cannot be finally rejected without examining whether the export was in pursuance of a pre-existing contract and without affording the assessee an opportunity to prove that foundational fact.

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