Export sale under Central Sales Tax law requires transfer of title after customs clearance; prior domestic sale is not exempt.

A sale qualifies as an export sale under section 5(1) of the Central Sales Tax Act, 1956 only where the sale itself is effected by transfer of documents of title after the goods have crossed the customs frontiers of India. A later submission or transfer of documents does not convert an earlier completed domestic sale into an export sale. On the facts, the transaction with the State Trading Corporation was concluded before shipment, and the corporation undertook the export under a separate arrangement. Sales to an Indian buyer therefore fell outside the first and second limbs of section 5(1), and export exemption was unavailable.

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Issues: Whether the turnover arising from sales of castor oil through the State Trading Corporation constituted an export sale within the meaning of section 5(1) of the Central Sales Tax Act, 1956.

Analysis: A sale falls within the second limb of section 5(1) only if it is effected by transfer of documents of title to the goods after the goods have crossed the customs frontiers of India. The decisive question is whether the sale itself was so effected, not merely whether documents were submitted after export shipment. On the facts, the transaction with the State Trading Corporation was completed before the goods set sail, and the later transfer of documents did not convert the completed domestic sale into an export sale. The first limb was also inapplicable because the petitioner's sale was to the State Trading Corporation, an Indian buyer, and the export was undertaken by that corporation to the foreign buyer under a separate arrangement.

Conclusion: The sales were not export sales under section 5(1) of the Central Sales Tax Act, 1956, and the claim to export exemption failed.

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