9911796707
TMI Blog1998 (9) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... the earlier part of section 5(2) apply. X X X X Extracts X X X X X X X X Extracts X X X X ..... the sum of US $ 1,895,475.00. The consignee therein was shown as SAIL. On August 2, 1991, the appellant placed a purchase order with the exporter for on behalf of SAIL. On August 16, 1991, the appellant wrote to SAIL enclosing a copy of its purchase order. The letter stated: "We shall arrange delivery of the material to you on 'high-seas' basis by endorsement and transfer of shipping documents in your favour after the documents have been paid for by your banker against L/C established by you." SAIL was requested to make arrangements for clearing the cargo, including arrangements for clearance thereof from customs. The letter stated that the responsibility for "payment of import duties, port charges and other expenses subsequent to sale on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and SAIL and that the sale to SAIL had not occasioned the import. 4.. In regard to the sale made by the appellant to Paradeep Phosphates Ltd., the facts are similar. 5.. The appellant filed writ petitions in the High Court of Orissa challenging the levy of sales tax on the aforesaid sales. The High Court noted the argument that the aforesaid sales on high seas basis had been effected prior to the imported goods "crossing the customs frontier of India", which expression was defined in section 2(ab) of the Central Sales Tax Act by an amendment which had taken place prior to the aforesaid sales. The High Court, however, relying upon the judgment of the Karnataka High Court in the case of Cashew Corporation of India Ltd. v. State of Karnatak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties as it was difficult to determine whether, at the time of the sale or purchase, the goods had entered or crossed the territorial waters. The actual checking of the goods took place in the customs station and not at the edge of the territorial waters. It was, therefore, necessary to so define the expression. A customs station has, by reason of the explanation to section 2(ab), the same meaning as in the Customs Act, 1962, and that is: "any customs port, customs airport or land customs station". A customs port is any port appointed under clause (a) of section 7 of the Customs Act to be a customs port. (That Paradeep Port is a customs port is not in dispute). 8.. Section 5, sub-section (2) has two parts. A sale or purchase of goods shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rld that a bill of lading represents the goods and the transfer of it operates as the transfer of goods. The delivery of the bill of lading while the goods are afloat is equivalent to the delivery of the goods themselves. 11.. The facts aforestated, based upon documents, show that the bill of lading had been endorsed in favour of SAIL while the consignment of the said coils was still upon the high seas. The sale, therefore, was a sale in the course of the import of the said coils into the territory of India; it was effected by transfer of the documents to the said coils before they had crossed the limits of the customs station at Paradeep Port. The position would be the same in respect of the goods sold to Paradeep Phosphates Ltd. 12.. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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