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TMI Blog2007 (11) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Appellate Tribunal, Sales Tax ("Tribunal") in Appeal Nos. 8 and 9/STT/83. The following questions of law have been referred for our opinion: 1.. Whether, in the facts and circumstances of the case, the learned Tribunal was justified in holding that the sales were in the course of export of the goods out of the territory of India? 2.. Whether the learned Tribunal was justifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, on the basis of the material on record, that since the payments were made only after the goods had crossed the territorial waters of India, the transaction of sale in favour of STC would be deemed to have been taken in the high seas and in the exportation stream. As regards goods sent by air, more or less the same procedure was followed and the Tribunal proceeded on the basis that the payment w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort or export.--(1) A sale or purchase of goods shall be deemed to take place in the course of the export of the goods out of the territory of India only if the sale or purchase either occasions such export or is effected by a transfer of documents of title to the goods after the goods have crossed the customs frontiers of India." A reading of section 5(1) clearly suggests that the export of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being so, there is no option but to hold that in the instant case the transaction of sale took place after the goods had left the custom frontiers of India. Thereafter, no sales tax would be leviable on such transaction.
Under the circumstances, we answer both the questions in the affirmative, in favour of the assessee and against the Revenue.
The reference is disposed of accordingly. X X X X Extracts X X X X X X X X Extracts X X X X
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