Goods Sold as "Ship Stores" Not Export Sales Under CST Act: Consumed Onboard, Not Exported. Refer to Section 5(1) & 2(ab).

Levy of Sales Tax - sale of goods imported from foreign country - to foreign bound ships as “ship stores” - sale or not - Since the goods are to be consumed on the board of the foreign going ship and the same would be consumed before reaching a destination, it does not fall under the definition of ‘export’. The sale cannot qualify as a sale occasioning export unless the goods reach a destination which is a place outside India. Further, since the goods have been sold from the bonded warehouse and had crossed the customs port/land customs station prior to their sale, it cannot qualify as a sale in course of export within the meaning of Section 5(1) read with Section 2(ab) of the CST Act. .....

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