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2014 (8) TMI 917 - HC - VAT and Sales TaxNature of transaction - local sale or export of goods - Failure to furnish evidence - Whether in the facts and circumstances of the case, the appellant Appellate Tribunal VAT was correct in holding that the transfer of property in the goods from the appellant company to M/s Hyaat, Katmandu (Nepal) took place after and not before the goods were cleared for export out of India - Held that:- Law was settled and the expression “in the course of export” was well established and understood. Transactions in questions were covered under the expression “in the course of export” and were, therefore, exempt. The Supreme Court has recorded that when property in the goods passes to the buyer after they have crossed the customs frontier for the purpose of export to a foreign country, the sale is “in the course of export” out of the territory of India. This clarification and elucidation was required as the assessee, the exporter, in B. K. Wadeyar’s case (1960 (9) TMI 64 - SUPREME COURT OF INDIA) was both the consignor and consignee in the FOB contract. But that does not mean that there cannot be and would not be any other case covered by the expression “in the course of export”. The quoted passage relates to and deals with second part of Section 5(1) of the Central Sales Tax Act, 1956. A case may well be covered by the first part. Facts of each case have to be examined to ascertain whether the transactions in question were “in the course of export” or not. Further, actual export has to be established and shown. Latter aspect has been dealt with in the case of Sita Juneja (1998 (9) TMI 649 - DELHI HIGH COURT). Matter remanded back - Decided in favour of assessee.
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