1952 (10) TMI 28 - SUPREME COURT

Whether sales here in question, which occasioned the export in each case, fall within the scope of the exemption under Article 286(1)(b)?

Held that:- Appeal dismissed. We are clearly of opinion that the sales here in question, which occasioned the export in each case, fall within the scope of the exemp- tion under Article 286(1)(b). Such sales must of necessity be put through by transporting the goods by rail or ship or both out of the territory of India, that is to say, by employing the machinery of export. A sale by export thus involves a series of integrated activities commencing from the agreement of sale with a foreign buyer and ending with 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 resultant export form parts of a single transaction. Of these two integ- rated activities, which together constitute an export sale, whichever first occurs can well be regarded as taking place in the course of the other