2006 (8) TMI 539 - HC - VAT and Sales Tax

Summary

Issues:
1. Whether the sales made by the petitioner were in the course of import and exempt under the Central Sales Tax Act and the Andhra Pradesh General Sales Tax Act?

Analysis:
The petitioner contended that the turnovers resulting from import constituted sales made in the course of import, thus exempt under the CST and APGST Acts. The petitioner argued that the sale to mini-steel plants was effected by transferring documents of title before crossing the customs frontier. However, the sales tax authority and Tribunal rejected these contentions, leading to the revision.

The Tribunal emphasized the lack of evidence regarding the transfer of property in goods between the petitioner and actual users. It was noted that the petitioner's claim of high-seas sales was not substantiated. The petitioner relied on a Supreme Court judgment involving a different scenario where an integral connection between sale and import was established through specific conditions and documents, which was lacking in the current case.

The court highlighted the terms of the agreement between the petitioner and the association, indicating that sale conditions were to be decided post-import. Considering the Supreme Court's judgment and the provisions of the Sales Tax Act, the court concluded that no substantial legal questions were raised in the revisions. The Tribunal's finding that the sales were not in the course of import was upheld based on the lack of evidence establishing a direct link between sale and import.

Therefore, the revision cases were dismissed as they failed to prove that the sales were in the course of import and exempt under the relevant tax Acts.