Export-linked exemption under section 5(3) requires the same goods and a proven pre-existing export contract.

Exemption under section 5(3) of the Central Sales Tax Act, 1956 is available only when the goods exported are the same goods that were purchased and the purchases were made pursuant to a pre-existing export agreement or order. On the facts discussed, raw cashew nuts and cashew kernels were treated as commercially different commodities, and the assessee failed to produce reliable evidence showing that all purchases were covered by export contracts. The revisional findings based on the absence of such nexus and the mismatch in quantities were treated as factual findings not shown to be perverse, so the tax liability was restored.

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Issues: (i) Whether the assessee was entitled to exemption from tax on the turnover of cashew nuts and kernels under section 5(3) of the Central Sales Tax Act, 1956. (ii) Whether the revisional order restoring tax liability could be sustained on the facts found by the Commissioner.

Issue (i): Whether the assessee was entitled to exemption from tax on the turnover of cashew nuts and kernels under section 5(3) of the Central Sales Tax Act, 1956.

Analysis: Exemption under section 5(3) applies only where the goods exported are the same goods that were purchased and where the last purchase or sale was made pursuant to a pre-existing agreement or order for export. Raw cashew nuts and cashew kernels are commercially different commodities. The assessee did not establish by acceptable evidence that the entire purchases were made for execution of pre-existing export contracts.

Conclusion: The assessee was not entitled to exemption under section 5(3) of the Central Sales Tax Act, 1956, and the finding was against the assessee.

Issue (ii): Whether the revisional order restoring tax liability could be sustained on the facts found by the Commissioner.

Analysis: The Commissioner's findings were based on the absence of reliable evidence showing that the purchases were covered by pre-existing export contracts and on the factual mismatch between the quantity purchased and the quantity exported. Those findings were treated as factual findings not shown to be perverse or unsupported by evidence.

Conclusion: The revisional order was sustained and the challenge to it failed.

Final Conclusion: The assessee failed to establish entitlement to export-linked exemption, and the tax assessment was restored in substance.

Ratio Decidendi: Exemption under section 5(3) of the Central Sales Tax Act, 1956 is available only when the exported goods are the same goods that were purchased pursuant to a pre-existing export agreement or order, and concurrent factual findings denying that nexus will not be interfered with unless shown to be perverse.

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