Export exemption for tea sold through auctioneers was upheld where earlier precedent covered the same pre-export sales issue.

Tea sold through auctioneers for export was treated as eligible for exemption under Section 5(3) of the Central Sales Tax Act, 1956, where the sales were found to be pre-export sales covered by an earlier decision on the same issue. The Madras High Court noted that the present dispute was identical to that prior ruling, and therefore the impugned assessment could not be sustained. The order was quashed and the matter remanded for fresh assessment in accordance with law.

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Issues: Whether the petitioner was entitled to exemption in respect of tea sold through auctioneers for export under Section 5(3) of the Central Sales Tax Act, 1956, and whether the impugned assessment order could be sustained in light of the earlier decision on the same issue.

Analysis: The controversy concerned sales of tea through auction centres, where the sales were claimed to be pre-export sales qualifying for exemption. The Court noted that an identical issue had already been decided in favour of similarly placed tea estates, and the present case was covered by that decision. In that earlier ruling, the exemption available for export sales through auctioneers was recognised, and the assessment action was found unsustainable. Following that reasoning, the impugned order was not treated as legally sustainable.

Conclusion: The petitioner succeeded. The impugned order was quashed and the matter was remanded to the first respondent for fresh assessment in accordance with law.

Ratio Decidendi: Where the issue is covered by an earlier decision recognising exemption for qualifying pre-export sales through auctioneers, the contrary assessment order cannot be sustained and the matter may be remanded for reassessment in accordance with law.

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