Direct export sales exemption requires reconsideration on bills of lading and supporting export documents before final assessment.

Direct export sales claimed as exempt under section 5(1) of the Central Sales Tax Act, 1956 could not be finally assessed without considering the relevant export evidence. The assessee sought an opportunity to produce bills of lading and other supporting export documents, and the court accepted that the export claim required reconsideration on that material. The assessment order was therefore set aside and the matter remanded to the assessing authority for a fresh order in accordance with law after examining the bills of lading, with liberty to proceed afresh if the documents were not produced within the stipulated time.

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Issues: Whether the assessment order taxing direct export sales was liable to be set aside and the matter remanded for fresh assessment on production of bills of lading and other export documents.

Analysis: The dispute concerned a claim that the turnover represented direct exports and was therefore exempt under section 5(1) of the Central Sales Tax Act, 1956. The record showed that the assessee had relied on documents other than the bills of lading to establish export, and the court accepted the request for an opportunity to place the bills of lading before the assessing authority. In these circumstances, the assessment could not be finally sustained without reconsideration of the export claim on the basis of the additional documents.

Conclusion: The assessment order was set aside and the matter was remanded to the assessing authority to pass a fresh order in accordance with law after considering the bills of lading, with liberty to proceed afresh if the documents were not produced within the stipulated time.

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