Penultimate sale exemption under export-linked transactions upheld where documentary evidence showed compliance with the export agreement.

A penultimate sale of bus bodies to an exporter was treated as exempt under section 5(3) of the Central Sales Tax Act because the transaction formed part of an integrated export arrangement and was supported by prescribed H forms, purchase orders and other evidence showing compliance with the export agreement or order. The factual record accepted by the Assessing Authority and followed by the Tribunal established that the sale was in relation to the export. The High Court noted that this view was consistent with Supreme Court authority and held that no referable question of law arose, so the Tribunal's order restoring the Assessing Authority's decision remained undisturbed.

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Issues: Whether the sale of bus bodies to an exporter was covered by section 5(3) of the Central Sales Tax Act, 1956 so as to qualify for exemption, and whether any referable question of law arose for the High Court.

Analysis: The assessee had produced the prescribed H forms and supporting purchase orders, and the Assessing Authority recorded a factual finding that the claim was supported by evidence. The transaction between the assessee and the exporter was treated as integrated with the export, so the penultimate sale was held to be in relation to the export. The Tribunal followed the view that section 5(3) applies where the sale is for the purpose of complying with the agreement or order in relation to the export, and the High Court noted that the same view had been affirmed by the Supreme Court.

Conclusion: The exemption under section 5(3) was rightly upheld, and no question of law warranting reference arose.

Final Conclusion: The order of the Tribunal restoring the Assessing Authority's decision was left undisturbed, and the reference petition was rejected.

Ratio Decidendi: A penultimate sale qualifies for exemption under section 5(3) when it is part of an integrated export transaction and is supported by the requisite documentary material showing that the sale was for the purpose of complying with the export agreement or order.

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