42. Exemption from tax on sales of tea for the purpose of export

(1) Where any dealer makes sale in auction held in Calcutta under the auspices of the Calcutta Tea Traders' Association or at Siliguri under the auspices of Siliguri Tea Auction committee, to a registered dealer, of tea (including containers or other material for its packing sold along with the tea) for the purpose of export (whether the export sale of tea is made after further processing or blending by him or not) by the purchasing dealer out of the territory of India, such dealer may, for the purpose of determining his taxable turnover of sales, deduct such sale under sub-clause (xi) of clause (a) of sub-section (3) of section 17 from his gross turnover of sales, subject to the conditions provided in sub-rule (2) and sub-rule (3).

(2) No claim for deduction of sale as referred to in sub-rule (1) shall be allowed unless-

(a) tea including containers and other materials for its packing is exported by the purchasing dealer out of the territory of India within six months from the date of such sale ;

(b) the dealer making the sale of such tea furnishes, on demand, a declaration in Form 9, obtainable from the appropriate assessing authority, duly filled in and signed by the purchasing dealer or by such other person as may be authorised in this behalf by the purchasing dealer, along with the evidence for export as prescribed in the schedule appended to the said declaration.

Provided that in a case where -

(i) tea (including containers and other materials for its packing sold along with the tea) cannot be exported by the purchasing dealer out of the territory of India for reasons beyond the control of such purchasing dealer within a period of six months from the date of such sale as specified in clause (a) of this sub-rule ; and

(ii) the dealer making such sale in auction as referred to in sub-rule (1) before the expiry of the said period of six months makes an application to the Commissioner, stating all particulars in respect of such sale of tea and in respect of the intended export thereof by the purchasing dealer and the reason for seeking extension of such period to such date as may be required by such purchasing dealer to effect the export of such goods,

the Commissioner may, if he is satisfied with the reasons shown in the application for extension referred to in clause (ii) of this proviso, extend, by an order in writing, such period to such date as he thinks fit and proper.