Strict proof for last-sale export exemption requires a clear export nexus and full compliance with prescribed evidence.

Exemption for the last sale preceding export under section 5(3) of the Central Sales Tax Act is available only where the assessee proves, through the prescribed material under rule 12(10)(a), that the sale was made after and for the purpose of complying with an export order or agreement. A mere claim of intended export, or production of some documents, is insufficient unless the required nexus between the sale and the export is strictly established. The earlier precedent cited was treated as fact-specific and did not relax these statutory conditions. Tax exemption provisions therefore require literal compliance with the prescribed evidentiary requirements.

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Issues: Whether the petitioner was entitled to exemption under section 5(3) of the Central Sales Tax Act, 1956 read with rule 12(10)(a) of the Central Sales Tax (Registration and Turnover) Rules, 1957 on the basis of Form H and allied materials, and whether the Tribunal erred in applying the earlier precedent to deny the claim.

Analysis: Section 5(3) grants exemption only where the last sale is shown to have taken place after and for the purpose of complying with an export agreement or order, and the claim must be supported by the prescribed evidentiary material. The requisite link or nexus between the assessee's sale and the contemplated export must be established by compliant proof; mere assertion of intended export or production of some documents is insufficient. The earlier decision relied upon was treated as fact-specific and inapplicable, because it did not alter the statutory requirements governing exemption under section 5(3) and rule 12(10)(a). Tax exemption provisions were held to require literal compliance with the conditions prescribed by law.

Conclusion: The petitioner was not entitled to the claimed exemption, and the Tribunal's view was upheld.

Ratio Decidendi: Exemption for the last sale preceding export is available only on strict proof of the statutory export nexus and compliance with the prescribed evidentiary requirements.

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