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2014 (9) TMI 564 - HC - VAT and Sales TaxBenefit of exemption under Section 5(3) of the Central Sales Act - Whether the Tribunal was justified in denying the benefit of exemption under Section 5(3) of the Central Sales Act to the applicant and rejecting Form-H having been filed by the applicant, only on the basis that the goods sold by the applicant to the purchaser/ exporter have not been exported by it in the same form, which is contrary to the decision of the Hon'ble Apex Court in the case of State of Karnataka Vs. Azad Coach Builders Pvt. Ltd. [2010 (9) TMI 879 - SUPREME COURT OF INDIA] - Held that:- Section 5(3) of the Act clearly indicates that the phrase 'in the course of export' comprises in itself three essentials, namely; (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 words 'occasioning the export' mean the factors, which were immediate course of export. The words `to comply with the agreement or order' mean all transactions which are inextricably linked with the agreement or order occasioning that export. The expression `in relation to' are words of comprehensiveness, which might both have a direct significance as well as an indirect significance, depending on the context in which it is used and they are not words of restrictive content and ought not be so construed. If there is in- severable link between the local sale or purchase and export and if it is clear that the local sale or purchase between the parties is inextricably linked with the export of the goods, then the claim of exemption under Section 5(3) from State Sales Tax shall be liable to be allowed. - Decided in favour of assessee.
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