Report No. 61

8.9. The question of modifying the position.-

The question has now been raised1, whether, in view of the effect of these decisions on liability to Local sales tax, the position should not be modified. Under section 5(1) of the Central Sales Tax Act, a sale or purchase shall be deemed to lake place in the course of export, if the sale or purchase occasions, "export".

The Central Sales Tax Act has no definition of the expression "export", and, as construed by the Supreme Court, that expression means the taking of goods out of India to a place outside India2. If there is no precise or single destination for goods, then, according to the interpretation placed by the Supreme Court there is no "export". This has led to the sale of fuel to international carrier being taxed by the States.

1. See para. 8.7, supra.

2. Para. 8.8, supra.