Form F and consignment records protected exemption where presumptions could not prove direct or inter-State sales.

Form F declarations and supporting records established that the goods were moved to the Kerala agent under consignment arrangements, so exemption could not be denied as direct or inter-State sales on mere suspicion. The revisional authority relied on surmises about godowns and the agents' role in tender proceedings, but no material showed a direct sale or an implied agreement with the ultimate purchaser. The absence of evidentiary basis made the revisional order unsustainable, and the appellate order granting relief to the assessee was restored.

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Issues: Whether the revisional authority was justified in reversing the appellate order and denying exemption on the footing that the assessee's transactions were direct sales or inter-State sales, despite the Form F declaration and supporting records produced by the assessee.

Analysis: The assessee had produced the relevant books, Form F declarations, stock registers, delivery notes, agreements with agents and other materials showing that the goods were sent to the agent in Kerala in the course of consignment transactions. The assessment order rejected the declaration without reasons, and the revisional order rested on surmises, including the presence of godowns and the agents' participation in tender proceedings, without any material to establish a direct sale or an implied agreement with the ultimate purchaser. The record also showed that in other assessment years on similar facts the department had not sustained revision, which supported the assessee's version.

Conclusion: The revisional order was unsustainable for want of evidence and the exemption could not be denied on mere presumptions. The order of the revisional authority was set aside and the appellate order in favour of the assessee was restored.

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