Export unit sales exemption requires supporting documents, but the claim may still be verified on remand with hearing.

Sales to 100% export oriented units were treated as an incentive-based exemption claim requiring supporting green cards and other documents, and the assessment was sustained on the material then available because the assessee had not produced full proof. The Court nevertheless allowed the assessee to place the documents before the Assessing Officer for verification, with a personal hearing and interim protection from coercive recovery, so the exemption claim could be examined on its merits.

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Issues: Whether the assessee was entitled to exemption on sales made to 100% export oriented units on production of the relevant green cards and supporting documents, and whether the assessment orders warranted interference.

Analysis: The assessee had produced documentary proof only for some of the claimed export oriented unit sales, and the assessment was completed after disallowing the balance exemption claim for want of evidence. The Court found that the Assessing Officer could not be faulted for completing the assessment on the material then available. At the same time, the claim for exemption was treated as an incentive and was not to be defeated on technicalities if the assessee could now produce the necessary green cards and other supporting documents. The Court therefore directed the assessee to place the documents before the Assessing Officer, who was to grant an opportunity of personal hearing and verify the claim.

Conclusion: The assessment orders were not set aside, but the assessee was given an opportunity to produce the documents and seek exemption verification before the Assessing Officer, with protection from coercive recovery meanwhile.

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