9911796707
TMI Blog1980 (12) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... nd therefore no sales tax was leviable on it. The appellate authority of Varanasi accepted this contention. In revision it was held that in the printed vouchers maintained under export promotion scheme details like name and nationality of the tourist, passport number, description of goods sold, sale and value of foreign exchange and their rupee equivalent, details of foreign currency, seaport or airport of embarkation, date of tourist departure, etc., were required to be entered. It also required to bear the signature and seal of the customs besides signature of the tourist and exporter. The purchaser is totally prohibited from selling or disposing off these things in any part of the country. From these, the intention on the part of the buy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he connection between the two cannot be voluntarily interrupted, without a breach of the contract or the compulsion arising from the nature of the transaction. In this sense to constitute a sale in the course of export it may be said that there must be an intention on the part of both the buyer and the seller to export, there must be an obligation to export, and there must be an actual export. The obligation may arise by reason of statute, contract between the parties, or from mutual understanding or agreement between them, or even from the nature of the transaction which links the sale to export. A transaction of sale which is a preliminary to export of the commodity sold may be regarded as a sale for export, but is not necessarily to be r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt" and urged the ratio of this case did not apply as there was "more" in this case which resulted in making the sale "in the course of export". The learned counsel argued that in National Carbon Co. v. Commissioner of Sales Tax [1969] 23 STC 388 (FB) it was held by a Full Bench of this Court: "From what has been stated above, it is clear that the destination of the goods shown in form AR-4 was a place in Nepal and the route by which the goods were intended to be exported was also indicated. The name of the buyers mentioned in that form also is that of the dealer of Nepal. These facts show very clearly not only the intention of the parties to export, but also an obligation on their part to do so. As the assessee-company was to claim rebat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the delivery of the goods to a common carrier for transport out of the country by land or sea. Such a sale cannot be dissociated from the export without which it cannot be effectuated and the sale and the resultant export form parts of a single transaction. Of these two integrated activities which together constitute an export sale, whichever first occurs can well be regarded as taking place in the course of the other. Even in cases where the property in the goods passed to the foreign buyers and the sales were thus completed within the State before the goods commenced their journey from the State, the sales must be regarded as having taken place in the course of the export and therefore exempt under article 286(1)(b). The same expositi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed the customs frontiers, or the sale must occasion the export. The word 'occasion' is used as a verb and means 'to cause' or 'to be the immediate cause of'. Read in this way the sale which is to be regarded as exempt is a sale which causes the export to take place or is the immediate cause of the export. The export results from the sale and is bound up with it. The word 'course' in the expression 'in the course of' means 'progress or process of', or shortly 'during'. The phrase expanded with this meaning reads 'in the progress or process of export' or 'during export'. Therefore the export from India to a foreign destination must be establised and the sale must be a link in the same export for which the sale is held." The question there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] 26 STC 65 cannot be of any assistance. They were cases relating to export to Nepal and Mahe, erstwhile French territory, where there was no mode of transport and therefore the goods had to be handed over in the Indian territory. In the instant case, it is true that the buyer is foreigner, the purchases have been made against foreign currency and there is total prohibition on sale of goods in India. But do these give rise to sale which can be said to be in the course of export. What is meant by sale in the course of export has been explained above. The making of sale in pursuance of export promotion scheme or in accordance with terms and conditions mentioned therein do not make a sale in the course of export. The sale may have been mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
