Export exemption for purchase of raw hides and skins denied where transaction was not the last sale before export.

Purchase of raw hides and skins within the State was held not to qualify as a purchase in the course of export under section 5(3) of the Central Sales Tax Act, 1956. Section 5(1) exempts only the sale or purchase that occasions export, while section 5(3) extends that exemption only to the last sale or purchase immediately preceding the export-occasioning transaction. Because the assessee's purchase was not the export-occasioning transaction and was one step further removed from it, the purchase-point levy under item 9 of the Third Schedule to the Andhra Pradesh General Sales Tax Act, 1957 remained applicable, and section 38 did not enlarge the exemption.

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Issues: Whether the petitioner's purchase of raw hides and skins within the State was exempt from tax as a purchase in the course of export under section 5(3) of the Central Sales Tax Act, 1956 read with section 38 of the Andhra Pradesh General Sales Tax Act, 1957.

Analysis: Section 5(1) of the Central Sales Tax Act, 1956 exempts only the sale or purchase that occasions the export, while section 5(3) extends the exemption to the last sale or purchase immediately preceding that export-occasioning transaction. The petitioner's purchase was not the transaction that occasioned the export, nor was it the last purchase preceding the export-purchase; it was one step further removed. The purchase-point levy under item 9 of the Third Schedule to the Andhra Pradesh General Sales Tax Act, 1957 therefore remained attracted, and section 38 did not extend the claimed exemption to this transaction.

Conclusion: The petitioner's purchase was not exempt under section 5(3) of the Central Sales Tax Act, 1956 and was taxable under the State Act; the finding is against the assessee.

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