9911796707
TMI Blog2004 (9) TMI 601X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 is without any statutory backing as in order to attract levy of tax under the Tamil Nadu General Sales Tax Act, 1959 there must exist a saleable event. - W.P. Nos. 26751 To 26754, AND 26771 To 26774 of 2003, 32677 To 32680, W.P.M.P. Nos. 32701 To 32704 of 2004. - - - Dated:- 30-9-2004 - DINAKARAN P.D. AND RAVIRAJA PANDIAN K. JJ. C. Natarajan, Senior Counsel for N. Inbarajan, for the petitioner. T. Ayyasamy, Special Government Pleader (Taxes), for the respondents. -------------------------------------------------- ORDER The order of the Court was made by K. RAVIRAJA PANDIAN, J. In all these cases, the order passed detaining the goods by the first respondent and the refusal of the Taxation Special Tribunal Printe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aram, Chennai, a certified warehouse under the Customs Act. 4.. While that being so, the first respondent served a goods detention order dated June 7, 2003 by stating the reason that the genuineness of the transactions has to be verified. Incidentally, as the petitioners were faced with a similar detention order on earlier occasion, by their letter dated June 5, 2003, provided complete details of import to the first respondent. In spite of that, the goods detention order was served and by notice dated June 11, 2003 called upon the petitioner to produce certain details as to high-sea sale. The petitioner by their letter dated June 25, 2003 submitted a reply. However, the respondents passed an order levying tax in a sum of Rs. 2,07,900 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eard the argument of the learned counsel on either side and perused the materials on record. 9.. The fact that the goods were imported by the petitioner and it had been warehoused and yet to be cleared for home consumption at the time of passing the detention order is not disputed. 10.. The first respondent passed an order by concluding that the goods have entered into local area when the goods were stored in the warehouse for which the petitioner is liable to pay tax under the Central Sales Tax Act and Tamil Nadu General Sales Tax Act by stating as follows without giving any reason: "The dealers have subsequently filed the following documents. Bill of entry Bill of lading Form XXA Commercial invoice. It has to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the respondents that the goods were cleared for home consumption. Until such time, as the duty payable on the goods is not paid, the amount of duty payable being determined with reference to the rate at which the duty was levied, as on the date of removal of the goods from the warehouse, the goods cannot be regarded as having crossed the customs barrier of India and entered into the local area for use or sale, either attract the entry tax provisions or to the sales tax provisions. The imposition of local tax is forbidden under article 286 of the Constitution of India. 14.. When the import is completed has to be determined with reference to section 5(2) of the Central Sales Tax Act, which provided that "a sale or purchase of goods sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities" shall have the same meanings as in the Customs Act, 1962. The customs station referred to in this section is one, which is defined under section 2(13) of the Customs Act, which reads that customs station' means any customs port, customs airport or land customs station". Customs port is defined in the Customs Act in section 2(12) means any port appointed under clause (a) of section 7 to be a customs port and includes a place appointed under clause (aa) of that section to be an inland container depot. Section 7(a) of the Customs Act enables the Central Government to appoint the ports and airports which alone shall be customs ports or customs airports. The crucial event for the purpose of section 2(ab) of the Act and consequently for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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