Judgment

A.N. RAY, C. J. (For himself and on behalf of K. K. Mathew, M. H. Beg and Y. V. Chandrachud, JJ.): These appeals by special leave raise the question whether the agreements between the appellants and the State Trading Corporation (hereinafter referred to as the corporation) were in course of export, and, therefore, immune from liability under the Central Sales Tax Act.

2. The appellant entered into four contracts for sale of mineral ore. Two of these contracts were with the foreign buyer M/s. Associated Metals and Minerals Corporation, New York. The other two contracts were with the State Trading Corporation. It is common ground that the Corporation entered into contracts with foreign buyers for sale of the identical goods purchased by the Corporation from the appellant.

3. The present appeal relates to the two contracts between the appellant and the Corporation. The High Court came to the conclusion that the appellant s two contracts with the Corporation are exigible to tax under the Central Seles Tax Act,1956.

4. Section 5 (1) of the Central Sales Tax Act, 1956 hereinafter referred to as the Act contains the following relevant provision:

"A sale or purchase of goods shall be d