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TMI Blog1975 (7) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... g on business at No. 122, Mint Street, Madras-1. They will be hereafter referred to as the importers. They had with them an import licence for importing a good quantity of zinc. The distribution of imported zinc was controlled and it will have to be done under the directions of the Controller of Non-ferrous Metals. Established importers like the respondents have to distribute the zinc to such of those local purchasers to whom the Controller of Non-ferrous Metals had issued a permit. On 18th September, 1964, the Controller directed the Importers to sell the zinc that would be imported by them to M/s. India Metal and Metallurgical Corporation (hereinafter referred to as the linked customer) and adviced the importers to contract the said corpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Pleader contended that the contract of sale between the importers and the linked customer did not occasion the import and it is only the contract between the importers and the foreign seller that had occasioned the import and that therefore the turnover is liable to be taxed under the Tamil Nadu General Sales Tax Act. The point that arises for consideration is directly covered by an authority. The Supreme Court in Binani Bros. (P.) Ltd. v. Union of India [1974] 33 S.T.C. 254 (S.C.)., on almost identical facts, held that the sale could not be said to have occasioned the import of the goods. That case related to copper. The sale and distribution of copper was not free, but controlled and it will have to be distributed only under the dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale and the movement of goods. In the import stream. We have, therefore, to hold that the sale by the importers to the linked customer did not occasion the import and that, therefore, it would not come within the purview of the first part of section 5(2) of the Central Sales Tax Act. The respondents also contended before the Tribunal that in any case since the bills of lading relating to the goods were endorsed in favour of the linked customer before the goods have crossed the customs frontier, the sale in favour of the linked customer shall be deemed to have taken place in the course of Import within the meaning of the latter part of section 5(2), On the other hand, the learned Government Pleader contends that the sale had taken place a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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