Export sale under the Central Sales Tax Act turned on post-customs-frontier facts; the transactions escaped sales tax.

Sales effected through the State Trading Corporation were treated as sales in the course of export under section 5(1) of the Central Sales Tax Act, 1956 only if they occasioned the export or were made by transfer of documents of title after the goods crossed the customs frontiers of India. On the facts recorded by the Tribunal, the sales occurred after the goods had crossed the customs frontiers by ship and by air. That factual finding was not shown to be perverse, and the reference court would not disturb it. The earlier authority on integrated transactions did not assist the Revenue because the sale itself was found to be within the export stream. The transactions were therefore not liable to sales tax.

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Issues: Whether the sales effected through the State Trading Corporation were sales in the course of export so as to fall within section 5(1) of the Central Sales Tax Act, 1956 and escape sales tax.

Analysis: Section 5(1) deems a sale to be in the course of export only if it occasions the export or is effected by transfer of documents of title after the goods have crossed the customs frontiers of India. On the facts found by the Tribunal, the sale transactions took place after the goods had crossed the customs frontiers, both by ship and by air. That finding was one of fact, and in a reference jurisdiction the Court would not disturb it unless it was shown to be perverse. No perversity was established. The reliance on the earlier authority concerning integrated transactions did not assist the Revenue because the factual finding here was that the sale itself occurred in the export stream after crossing the customs frontiers.

Conclusion: The transactions were sales in the course of export and were not liable to sales tax.

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