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Issues: (i) Whether the assessment could be revised under section 16 on the ground that the turnover earlier treated as exempt had escaped assessment. (ii) Whether the disputed sales were sales in the course of export and therefore not liable to tax.
Issue (i): Whether the assessment could be revised under section 16 on the ground that the turnover earlier treated as exempt had escaped assessment.
Analysis: The revision was upheld because the reopening of the exempted turnover was treated as a proper revisionary exercise on identical facts already considered in an earlier decision of the Tribunal. The contention that the case was one of mere reassessment without jurisdiction was rejected.
Conclusion: The revision under section 16 was held valid and was in favour of the Revenue.
Issue (ii): Whether the disputed sales were sales in the course of export and therefore not liable to tax.
Analysis: The claim of export sale failed because the appellants had no privity of contract with the foreign buyers. The contract with the Calcutta exporter was distinct from the contract with the foreign buyers, and it was only the latter contract that occasioned the export within the meaning of section 5 of the Central Sales Tax Act. On that footing, the disputed sales could not be treated as export sales.
Conclusion: The disputed sales were not held to be sales in the course of export and the issue was decided in favour of the Revenue.
Final Conclusion: Both appeals failed, and the tax authorities' action was sustained on both issues.
Ratio Decidendi: A sale qualifies as one in the course of export only where the contract relied upon is the contract that directly occasions the export; absent privity of contract with the foreign buyer, the intermediary sale is not an export sale.
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