Export exemption cannot be refused for lack of registration or a non-material defect where export nexus is otherwise proved.

Export exemption under section 5(3) of the Central Sales Tax Act could not be denied merely because the dealer lacked registration under the Kerala General Sales Tax Act, since registration affected tax collection and compliance machinery, not the substantive entitlement to exemption on qualifying export turnover. An omission of sale bill particulars in form 18A was also not a material defect where the form and supporting documents sufficiently established the prior export order, purchase for that order, and actual export. Technical defects that do not undermine the export nexus do not defeat the exemption claim.

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Issues: (i) Whether export turnover could be denied exemption under section 5(3) of the Central Sales Tax Act, 1956 merely because the dealer had not obtained registration under the Kerala General Sales Tax Act, 1963. (ii) Whether omission of sale bill particulars in form 18A furnished under the Kerala General Sales Tax Rules was a material defect so as to defeat the claim for export exemption.

Issue (i): Whether export turnover could be denied exemption under section 5(3) of the Central Sales Tax Act, 1956 merely because the dealer had not obtained registration under the Kerala General Sales Tax Act, 1963.

Analysis: The exemption under section 5(3) rests on the constitutional prohibition against taxing export sales and is intended to protect last sales preceding export. Liability to pay tax under the Kerala General Sales Tax Act, 1963 is not different for registered and unregistered dealers; registration affects collection of tax and compliance machinery. The Act and Rules do not provide that absence of registration, by itself, extinguishes exemption on turnover otherwise qualifying for export exemption.

Conclusion: Denial of export exemption solely for want of registration under the Kerala General Sales Tax Act, 1963 was unsustainable.

Issue (ii): Whether omission of sale bill particulars in form 18A furnished under the Kerala General Sales Tax Rules was a material defect so as to defeat the claim for export exemption.

Analysis: The validity of the declaration form has to be tested against the ingredients of section 5(3) of the Central Sales Tax Act, 1956. What is essential is proof of a prior export order, purchase for complying with that order, and actual export supported by the prescribed documents. Where the form and annexures disclose the material particulars necessary to establish those ingredients, a merely formal defect does not justify rejection of the exemption claim. Details of purchase bills furnished in the form were treated as sufficient compliance for identifying the transaction.

Conclusion: The defect complained of was not material, and form 18A was sufficient to support the claim for exemption.

Final Conclusion: The revisions were allowed, the disallowance of export exemption was set aside, and exemption was directed to be granted on production of form 18A supported by the prescribed documents.

Ratio Decidendi: Export exemption cannot be denied on technical grounds such as lack of registration or a non-material defect in the declaration form, if the statutory conditions for exemption and the supporting documents establishing the export nexus are satisfied.

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