Report No. 61
Point 9-Import and Export-Khosia's Case
The judgment in K.G. Khosla's case, AIR 1966 SC 1216: 1966 SCR 352., which restricts the power of the States as regards sales in the course of import, is considered at length. The recommendation is for an amendment which will give effect to the following propositions.1
(1) A purchase of goods made by an exporter from a local seller, for the purpose of exporting them in order to implement a contract of sale with a foreign buyer, shall not be deemed to be a purchase which has occasioned the export, even if it be a term of the contract of purchase that the goods shall be exported and even if, pursuant to such contract, the goods are exported and even if but for such term, the goods would not have been exported.
(2) A sale of goods made by an importer to a local buyer, in order to implement a contract of sale with the local buyer, shall not be deemed to be a sale which has occasioned the import, even if it be a term of the contract of sale that the goods shall be imported, and even if, pursuant to such contract, the goods were imported and even if, but for such term, the goods would not have been imported.
1. This is not a draft.
[Chapter 3]
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