Section 5 of Central Sales Tax Act defines when a sale or purchase is said to be in course of export. Section 5(3) states that notwithstanding provisions of section 5(1), last sale or purchase of goods preceding the sale or purchase occasioning the export of those goods out of territory of India shall also be deemed to be in the course of such export, if such last sale or purchase took place after, and was for the purpose of complying with, the arrangement or order for or in relation to such export.
Accordingly. Court came to the conclusion that as the bus bodies supplied by the Assessee to the exporters was in the course of exports and the words "in relation to such export" extended the scope of the exemption to the extent that even if there is no agreement or order but they are in relation to such exports, the exemption could still be claimed under Section 5(3) of the Central Sales Tax Act.
