Report No. 30
42. Export sales and Import purchases.-I shall now deal with the decided cases of export-sales and import-purchases with particular reference to the nature of the contracts of sale or purchase which invariably formed the basis of the transactions therein considered. While considering these decided cases, I leave out of account such sales or purchases in the course of import or export as are effected by transfer of shipping documents while the goods are beyond the customs frontiers of India and which after the coming into force of the Central Sales Tax Act, 1956 are covered by the latter parts of its sections 5(1) and (2).
The latter part of section 5(1) reads, "or is effected by a transfer of documents of title to the goods after the goods have crossed the customs frontiers of India"; and the latter part of section 5(2) says, "or is effected by a transfer of documents of title to the goods before the goods have crossed the customs frontiers of India".
The sales or purchases covered by these parts do not present such difficulty, nor do they arise for our consideration in the present case. In the present case, we are only concerned with whether the sale by the assessee in favour of the Director-General of Supplies and Disposals occasioned the import of goods from Belgium to India.