Report No. 30

86. Gurviah Naidu's cases.-

In the State of Madras v. Gurviah Naidu, AIR 1956 SC 158: 6 STC 717. it was held, that purchases of skins for the purpose of implementing the orders of the foreign buyers were not purchases "in the course of export" within the meaning of Article 286(1)(b), because such purchases did not themselves occasion the export. The two Travancore cases were followed. S.R. Das, Actg. C.J. observed, that an assessee who purchases goods after securing orders is not exempt under Article 286(1)(b) from liability to pay sales tax in respect of purchases made by him, because the purchases do not themselves occasion the export. Goods were purchased for export, but that purchase did not occasion the export.