Fair assessment in export exemption claims requires prior documents to be considered and a real chance to produce further proof.

Where export-supporting documents such as form H, invoices, bill of lading and shipping bills were already produced and earlier accepted by the assessing authority, a revisional order could not disallow exemption on a bare assertion that no evidence had been filed. If doubt remained about actual export, the authority had to seek further proof or give the assessee an effective opportunity to cure any deficiency before rejecting the claim. The absence of such fair opportunity, and the failure to address the earlier acceptance of the same documents, amounted to non-application of mind. The exemption disallowance was therefore set aside and the matter remanded for fresh consideration in accordance with law.

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Issues: Whether the revisional order disallowing exemption on sales to exporters and denying the petitioner an effective opportunity to produce supporting export documents was sustainable.

Analysis: The assessment records showed that form H, invoices, bill of lading, shipping bills and connected export documents had already been produced and had earlier been verified and accepted by the very same assessing authority. If the authority entertained doubt as to whether the goods were exported as such, it was open to call upon the assessee to produce additional documents, including the foreign buyer's order or to seek summons of such records. Instead, the impugned order proceeded on the premise that no documentary evidence had been produced, without dealing with the earlier acceptance of the same documents and without affording an opportunity to cure any perceived deficiency. Such a course reflected non-application of mind and violated the principles governing fair assessment.

Conclusion: The order disallowing exemption was unsustainable and liable to be set aside; the matter had to be reconsidered after giving the assessee an opportunity to produce further documents, if required.

Final Conclusion: The writ petition succeeded by way of remand, and the assessing authority was directed to reconsider the claim of exemption in accordance with law and the applicable precedent.

Ratio Decidendi: Where documentary material supporting export is already on record and has earlier been accepted, an assessing authority cannot reject the claim on a bare assertion of no evidence and must give the assessee a fair opportunity to furnish additional proof before denying exemption.

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