TMI Blog2013 (6) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... below have recorded the finding that the goods mentioned in the invoices, by which the goods have been sold, are different to the goods mentioned in the bill of ladding and Form 'H'. It means that the goods, which had been exported, were different to the goods sold by the applicant. In Form 'H' the foreign buyer's order number and date are not mentioned. Therefore, Form 'H' filed was incomplete and inadmissible for the transaction in dispute. The copy of the order of the foreign buyer has not been produced before any of the authorities to show that the purchases by the exporter from the applicant was inextricably connected with the export and there existed a bond between the contract of sale and the actual export. Such link is missing i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;H' and the bill of ladding were different to the goods purchased and claimed to have been exported. No details relating to the payment for the job work has been furnished. The assessing authority levied the tax on the purchases of goat raw skins under Section 3-AAAA in the assessment under the Act and also treated the sales to the exporter as an inter-State sales and levied the tax under the Central Sales Tax Act (called the 'Central Act' for brevity). Being aggrieved by the two assessment orders the applicant filed appeals before the Additional Commissioner Grade II (Appeals), Commercial Tax, Etawah. The appellate authority has allowed both the appeals and set aside the levy of tax. Being aggrieved by the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Constitution Bench of the apex Court in the case of State of Karnataka v. Azad Coach Builders Pvt. Ltd. And another reported in (2010) 36 VST 1 wherein it has been held that the sales and purchases between the parties should be inextricably linked with the export of the goods for the claim of exemption under Section 5(3) of the Central Act. He submitted that even the Tribunal has wrongly dismissed the appeal of the Commissioner of Trade Tax under the Act and upheld the deletion of tax under Section 3AAA of the Act because the sale by the present applicant to the exporter is not the export sale and, therefore, the proviso to Section 3AAA of the Act does not apply. Having heard learned counsel for the parties, I have perused the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... analyse all those decisions in the light of the Statement of Objects and Reasons of the Amending Act 103 of 1976 and on the interpretation placed on section 5 (3) of the CST Act, the following principles emerge: To constitute a sale in the course of export there must be an intention on the part of both the buyer and the seller to export; There must be obligation to export, and there must be an actual export. The obligation may arise by reason of statute, contract between the parties, 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 lin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that any penultimate sale made in furtherance of export, irrespective of the nature of the goods, would also be covered, is too tall a proposition to be accepted. It all depends on the question as to whether the sale or purchase is inextricably connected with the export of goods and not a remote connection as tried to be projected by the counsel. The connection between the penultimate sale and the export of goods should not be casual, accidental or fortuitous, but real, intimate and inter-linked, which depends upon the nature of the agreement the exporter has with the foreign buyer and the local manufacturer, the integrated nature of the transactions and the nexus between the penultimate sale and the export sale. Therefore, the questio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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