TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the turnover from sales by the petitioner, where goods were sent outside India and consideration received in foreign exchange, constitutes a "sale in the course of export" within the meaning of Section 5(1) of the Central Sales Tax Act, 1956 and is therefore exempt from tax.
Analysis: The Court examined Section 5(1) of the Central Sales Tax Act, 1956 and the constitutional principle in Article 286(2). The Court relied on the established distinction between a "sale for export" and a "sale in the course of export" as articulated by the Supreme Court: a sale in the course of export requires an integral, inextricable link between the sale and the export such that the sale occasions the export (including transfer of documents of title after crossing customs frontiers or an obligation/contractual bond to export). The impugned revision order accepted that goods had been sent out of India and foreign exchange was received but concluded that these facts did not satisfy Section 5(1). On the facts before it, the Court found that the revision order misinterpreted the statutory test and failed to treat the turnover as falling within Section 5(1) where the requisite connection between sale and export was established.
Conclusion: The writ petition is allowed; the impugned order of revision dated 28.06.2019 is set aside and the petitioner's turnover in respect of the exported goods is to be treated as sales in the course of export under Section 5(1) of the Central Sales Tax Act, 1956 (decision in favour of the assessee).
TaxTMI 
TaxTMI 
