Export-linked CST exemption for declared goods depends on statutory conditions, not merely different processing stages of hides and skins.

For purposes of section 5(3) of the Central Sales Tax Act, 1956, exemption turns on whether the purchased goods are the very goods exported or goods acquired in compliance with an export obligation. In the case of declared goods, raw hides and skins and dressed hides and skins are treated as one commodity under section 14(iii), so their different commercial stages do not by themselves defeat export-linked exemption. A revisional authority cannot reject the claim without verifying whether the statutory conditions are satisfied on the record; the matter must be examined afresh in accordance with the governing legal position.

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Issues: Whether raw hides and skins purchased for the purpose of complying with an export order are entitled to exemption under section 5(3) of the Central Sales Tax Act, 1956.

Analysis: The exemption under section 5(3) turns on whether the goods purchased are the very goods exported or are goods obtained in compliance with the export obligation. In the case of declared goods like hides and skins, section 14(iii) of the Central Sales Tax Act, 1956 treats raw hides and skins and dressed hides and skins as the same commodity. Their commercial treatment as distinct items under the State sales tax schedule does not control the section 5(3) enquiry. The authority had rejected the claim without verifying whether the statutory prerequisites for exemption were satisfied on the record. The matter therefore required reconsideration by the assessing authority in the light of the governing law.

Conclusion: The claim for section 5(3) exemption could not be finally negatived on the basis adopted by the revisional authority, and the matter had to be examined afresh in accordance with the declared legal position.

Ratio Decidendi: For purposes of section 5(3) of the Central Sales Tax Act, 1956, raw hides and skins and dressed hides and skins are one and the same declared commodity, and their different stages of processing do not by themselves defeat export-linked exemption.

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