Report No. 30
146. Export Sales exemption from sales tax.-
We find, that the Import and Export Policy Committee1 stated, that the expression "in the course of export" was rather ambiguous. That Committee noted that there were suggestions that a liberal view should be taken of the expression "in the course of import or export", and that the Central Sales Tax Act should be suitably amended.
In fact, that Committee recommended that the Central Government should assume responsibility for remission of sales-tax entering into export costs, and that the Central Government may either "recover the due amount from the State Government, or make such financial re-adjustments with the State Governments, as they may deem appropriate". Thereafter, a Committee was appointed by the Government of India to study the incidence of State and Central Sales taxes on commodities entering the export trade of India, and to indicate the quantum of reliefs1.
1. Report of the Import and Export Policy Committee, Government of India, Ministry of Commerce, 1952, pp. 36-37, Chapter 4, paras. 63 to 67 and footnote on p. 36.
2. Report of the Committee on Sales Tax (on commodities exported from India), (1964), Government to India, Ministry of Commerce, pp. 8 and 9, Ch. 3, paras. 13-14.
147. The latter Committee made detailed recommendations for relief in respect of two sales prior to the sale in the course of export1.
1. Report of the Committee on Sales Tax (on commodities exported from India), Government of India, Ministry of Commerce (1964), pp. 26 to 31, Ch. 5, paras. 9 to 19.