9911796707
TMI Blog1975 (10) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... see was rejected by the Sales Tax Officer on the ground that the turnover in question represented local sales in favour of a company called the Agra Charm Kala Kendra. On appeal the claim of the assessee was allowed and the revision of the State was dismissed by the revising authority. The Commissioner is aggrieved and, at his instance, the following question of law has been referred to us: "Whether, on the facts and the circumstances of the case, sales worth Rs. 20,907 were sales in the course of export and as such the assessee was entitled to claim exemption regarding them?" Briefly stated the facts are that the State Trading Corporation of India, New Delhi, entered into contracts with a Russian firm and certain other foreign buyers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... poration and the last by the assessee-company in favour of the Kendra. It is true that the contract of sale between the Kendra and the assessee-company was analogous to the contract between the State Trading Corporation and the Kendra. In other words, the assessee-company had to supply goods on the same terms and conditions upon which the Kendra undertook to supply the goods to the State Trading Corporation. It is true that under the agreement between the assessee and the Kendra, the latter has been described as the agent entitled only to charge overriding commission, but the fact remains that the assessee supplied shoes to the Kendra under a contract of sale. The fact that the assessee was responsible for transporting the goods to the port ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... privity of contract was between the corporation and the foreign buyers. The immediate cause of the movement of goods and export was the contract between the foreign buyer who was the importer and the corporation who was the exporter and shipper of the goods. All relevant documents were in the name of the corporation whose contract of sale was the occasion of the export. The expression "occasions" in section 5 of the Act means the immediate and direct cause and, but for the contract between the corporation and the foreign buyer, there was no occasion for export. Therefore, the export was occasioned by the contract of sale between the corporation and the foreign buyer and not by the contract of sale between the corporation and the appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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