- (1.) The Judge Revisions Sales Tax, Agra had submitted this statement of the case for the opinion of this Court on the following question of law :- Whether on the facts and, in the circumstances of the case, sales worth Rs. 40,517.75 were sales in the course of export and, as such the assessee was entitled to claim exemption regarding them ?
(2.) The assessee is a manufacturer of shoes at Agra. He entered into a contract with the State Trading Corporation of India for manufacture of certain varieties of shoes so that the Corporation could export them to foreign byers. The terms of the contract between the assessee and the State Trading Corporation were that the manufacturers shall allow foreign buyers inspection staff to come and inspect the goods. This was to be the preliminary inspection and the approval of the goods was provisional subject to the final acceptance and if any goods were rejected by them, entitled to recover the price which had already been paid by them to the assessee. The assessee was to submit his bills from time to time in the from prescribed by the buyer in duplicate Payment to the extent of 96.75% of the bills was to be made to him by the State Trading Corporation of India within ten days of the receipt of the bill. The balance 3.2% was to be released after adjustment of the claim that may arise in view of the rejection of certain goods by the foreign buyers.
(3.) On these facts, the Judge Revisions held that the turnover in respect of sales which ultimately were exported sales within the meaning of S. 5 of the Central Sales Tax Act.;