V.C. DAGA, J.

Heard Mr. Joshi, learned counsel for the applicant and Mr. Sonpal, learned counsel for the respondent.

This reference under section 51 of the Bombay Sales Tax Act, 1959 ("BST Act" for short) is made by the Sales Tax Appellate Tribunal to seek decision of this Court on the following substantial questions of law :

1. Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the transactions were not sales in the course of export within the ambit of section 5 of the Central Sales Tax Act, 1956 ?

2. Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in confirming the penalty levied under section 36(2)(c) Explanation (1) of the Bombay Sales Tax Act, 1959 ?

The Facts :

The applicant is a dealer registered under the BST Act. The applicant is acting as an authorised dealer to promote and market the products of M/s. R.K. Machine Tools Pvt. Limited, Ludhiana. The Sales Tax Officer (48), 'A' Ward, Unit IV, Mumbai vide his order dated 27th March, 1985 assessed the applicant for the period 1st April, 1983 to 31st March, 1984 levying sales tax under the BST Act on the transaction o