1. ' SALEEM AKHTAR, J.-This is an application under section 17(1) of the Sales Tax Act, 1951, raising the following questions: "(i) Whether in the facts and circumstances of the case the Income-tax Appellate Tribunal was right in holding that tents sold by the appellant to the Red Cross Society were not for delivery outside Pakistan, when the fact of export outside Pakistan was not disputed?
2. (ii)Whether the Tribunal was right in holding that the exemption from sales tax was available only to an exporter and the applicant not himself being an exporter the exemption was not available to him?
(iii) (iii) Whether there was any evidence in support of the finding of the Income-tax Appellate Tribunal that the tents sold by the applicant to the Pakistan Red Cross Society were not for delivery outside Pakistan and was not this finding in disregards of the evidence on record proving that the tents were actually delivered outside Pakistan i. e. Turkey."
3. ' Briefly the facts are that the applicant is a firm engaged inter alia in the business of manufacture, sale and export of tents and "shamianas". In the financial year ending 30th June, 1967, out of the total sales, Rs, 31,58,111, represented export sale. In this amount was included a sum of Rs, 84,200 in respect of sale of tent made by the applicant to Red Cross Society of Pakistan for delivery and donation for the relief of earthquake victims of Turkey. These tents were actually delivered in Turkey for relief purpose and a certificate was issued by the Red Cross Society of Pakistan, stating that tents purchased from the applicant shall be exported to Turkey. The applicant claimed exemption from the sales tax in respect of the sales of the Tents amounting to Rs, 84,200 made to the Red Cross Society of Pakistan, but the Assistant Sales Tax Officer by his order dated 25-6-1982 refused this claim. An appeal was filed by the applicant before the Appellate Assistant Commissioner, but the same was rejected. The applicant then filed an appeal before the Income-tax Appellate Tribunal, which was also rejected. The contention of the applicant was repelled by the Tribunal in the following manner: "We have beard the parties and given our earnest consideration to the facts of the case, but we are, however, unable to accept the contention of the authorised representative of the appellant that when in no dispute with regard to the fact that tents were acutally delivered in Turkey for relief earthquake victims the appellant is entitled to exemption from payment of sales tax on the tents sold to the Red Cross Society in pursuance of the Notification quoted hereinabove notwithstanding the fact that the appellant did not export the tents out of Pakistan. The express requirement of the notification are that in order to qualify for exemption on the goods "are sold for delivery outside Pakistan". The facts of the present case do not clearly meet this specific requirement inasmuch the goods were not sold for delivery outside Pakistan, but were admittedly sold in Pakistan and payment in respect thereof was received in Pakistan. As already held by us in S. T. A. No, 155 of 1967- 68 dated 2-2-1970 exemption is available only to the exporter and admittedly in the case before us the appellant is not the exporter, it made an outright sale to the Red Cross Society in Pakistan, and in case the goods were not exported the appellant could not compel the purchaser to export the same."
4. ' The applicant had claimed exemption on the basis of Notification issued under section 7 of the Sales Tax Act, 1951 (Act III of 1951) which is reproduced hereunder: "(1) In exercise of the powers conferred by section 7 of the Sales Tax Act, 1951 (III of 1951), and in supersession of the Ministry of Finance (Revenue Division) Notification No, 1, dated the 1st May, 1953, the Central Government is pleased to exempt from the tax payable under the said Act all such goods (other than ginned cotton) as are manufactured or produced in Pakistan (including raw materials used in their manufacture or production), are sold for delivery outside Pakistan and are actually so delivered.
(2) Where such tax has already been paid by a person not licensed under section 9 of the said Act to a licensee manufacturer or a licensed wholesaler on any goods to which this notification applies, the amount of tax so paid shall be refunded to such person in accordance with the provisions of the said Act and in such manner and to such extent as may be prescribed)."
5. It is clear from the Notification that in order to attract its applicability certain conditions are to be satisfied which have been specified as (i) 4 that the goods are manufactured or produced in Pakistan, (ii) that they are sold for delivery outside Pakistan, (iii) that they are actually so delivered.
6. ' Once these three conditions are satisfied the applicant becomes entitled to claim exemption.
7. ' A perusal of the order passed by the authorities at three stages makes it clear that at no point of time it has been disputed that the applicant had not manufactured the goods or that the goods were not sold for delivery outside Pakistan or that they were not so delivered. These facts seem to be admitted and have not been questioned even by the learned Appellate Tribunal. As these necessary ingredients have not been found lacking, the only question remains for consideration, whether the applicant can claim exemption under the aforestated Notification.
8. ' The only ground which has been made for rejection of the claim for exemption by the learned Tribunal, and which has been reiterated by Mr. Nasrullah Awan, the learned counsel for the Department, is that only an exporter can claim exemption and as the goods were sold in Pakistan, and the payment in respect thereof was received in Pakistan, the case does not fall within the ambit of the Notification. The wordings of the Notification reproduced above are wide enough and cannot be given a restricted meaning as contended by the learned counsel for the respondents. If the goods were manufactured or produced in Pakistan, sold for delivery outside Pakistan and were delivered the conditions laid down by the Notification stand satisfied. It is not necessary that the assessee should have personally exported these goods. If a seller satisfied these three conditions he can claim exemption under the Notification. The exemption is in respect of the goods and therefore, to restrict the applicability of the Notification to the exporters would be against its letter and spirit. Similar question arose for consideration in case of Adam Ltd. v. Commissioner of Income-tax (1), referred by Mr.,Ali Athar, whereafter considering the provisions of the Sales Tax Act and similar Notification under which refund was claimed, following observation was made:- "Now, it must be remembered that the exemption of sales tax by the said notification is in relation to the goods. All that is necessary is that the three conditions mentioned in the Notification must be fulfilled. Once that is done, the goods are exempt from sales tax."
9. ' As the Department has not challenged the fact that the goods were not sold for export and were actually exported and delivered, it is not possible to contend that the applicant is not entitled to the exemption on the ground that it had not exported the goods itself. We, therefore, answer the question in the following manner:-(1) In the negative.
10. (ii)In the negative.
(iii) The first point is answered in the negative and the second point in the affirmative.
(1) (1967) 16 Taxation 97