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TMI Blog2017 (11) TMI 1160X X X X Extracts X X X X X X X X Extracts X X X X ..... f India. As is evident from a plain reading of "Condition (i)", the emphasis is on the manufactured goods being exported and not that the actual manufacturer export the goods. The crucial test, therefore, is whether the manufactured goods have ultimately been exported out of India. In view thereof, the Court finds that the reasoning which weighed with the Department to deny relief to the revisionist on this score cannot be sustained. Admittedly the assessee was not the ultimate exporter of the goods. In order to succeed, therefore, it would be incumbent upon him to establish that the transactions fall within the ambit of Section 5 (3) of CST Act 1956. This issue as to whether the manufactured goods have moved in the course of export cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the manufacturer and ultimate exporter are one and the same, the benefit flowing from the said notification would not be available. It is the correctness of this stand of the respondents which falls for consideration. Since an answer to the question formulated would turn upon the terms of the notification dated 12 February 1999, the same is extracted herein below. TIF-2-289/XI-0 (820)/92-U.P.Act-15-48-Order-99, dated 12-2-1999 In exercise of the powers under Section 4-B of the Uttar Pradesh Trade Tax Act, 1948 (U.P. Act No.XV of 1948), the governor is pleased to declare that with effect from February, 15th 1999 and subject to conditions and restrictions specified in the said section and in this notification, no tax shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der this notification shall be admissible in respect of sale to or purchase by distilleries and breweries. (emphasis supplied) As is evident from a reading of the said notification, the State exercising powers conferred by Section 4-B of the 1948 Act has proceeded to exempt certain categories of transactions from a levy of purchase tax. This exemption is in respect of raw materials, processing materials, consumable stores etc. in case such goods are required by the manufacturer and are actually utilized by him in the manufacture of or packing of goods. One of the primary eligibility conditions to qualify for exemption placed by the notification is that the manufactured goods are exported out of India. The Department has taken the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence to the provisions encapsulated in section 5. In order to elucidate on this aspect, it would be necessary to notice the provisions of section 5 of CST, 1956 which reads thus:- 5. When is a sale or purchase of goods said to take place in the course of import 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. (2) A sale or purchase of goods shall be deemed to take place in the course of the import of the goods into the territory of India only if the sale or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b-section (3) of Section 5 of the Central Sales Tax Act, 1956 that in order to attract the applicability of that provision, it is necessary that the goods which are purchased by an assessee for the purpose of complying with the agreement or order for or in relation to export, must be the same goods which are exported out of the territory of India. The words those goods in this sub-section are clearly referable to any goods mentioned in the preceding part of the sub-section and it is therefore obvious that the goods purchased by the assessee and the goods exported by him must be the same. If by reason of any processing to which the goods may be subjected after purchase, they change their identity so that commercially they can no longer b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies, or from mutual understanding or agreement between them, or even from the nature of the transaction which links the sale to export. - To occasion export there must exist such a bond between the contract of sale and the actual exportation, that each link is inextricably connected with the one immediately preceding it, without which a transaction sale cannot be called a sale in the course of export of goods out of the territory of India. 27 The phrase sale in the course of export comprises in itself three essentials: (i) that there must be a sale; (ii) that goods must actually be exported; and (iii) that the sale must be a part and parcel of the export. The word occasion is used as a verb and means to cause or to be the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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