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TMI Blog1994 (6) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... acs Trading Company v. State of Andhra Pradesh [1975] 36 STC 260) was, "whether the sales were outside the State or in the course of export and therefore not exigible to tax under the Andhra Pradesh General Sales Tax Act, 1957?" The same was answered by holding (i) that the goods were specific or ascertained and were within the State when the contract of sale took place. Therefore, the requirements of section 4(2)(a) of the Central Sales Tax Act, 1956 (Act 74 of 1956) were fully satisfied and the sales must be said to have taken place inside the State; and (ii) that, as the goods were meant for consumption during voyage and they had no destination in any foreign country, where they could be received as imports, the sales were not sales in the course of export. 3.. The point raised before this Court (Fairmacs Trading Company v. State of Tamil Nadu [1978] 41 STC 157) was, "whether the sale took place within the State of Tamil Nadu and liable to be taxed under the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959-for short 'the TNGST Act')?" The ground so raised was answered by holding, (i) that there was nothing to show in the communications from the ship that the go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il Nadu as the second respondent, praying for issue of a writ of mandamus directing the respondents to forbear from levying or recovering sales tax under the provisions of the TNGST Act. 7.. The petitioner also filed W.M.P. No. 33218 of 1993 praying for similar relief, by way of interim injunction, pending disposal of the writ petition. 8.. When the writ petition, along with W.M.P., came up for admission, this Court directed Mr. T. Ayyasamy, learned Government Advocate (Taxes), to take notice for and on behalf of the respondents and he accordingly did so. 9.. Arguments of Mr. C. Natarajan, learned counsel representing the petitioner and Mr. T. Ayyasamy, learned Government Advocate (Taxes), were heard. 10. Resolution of the tangle posed in this case depends upon the interpretation to be made of sub-item (a) of item 70 of the First Schedule and item 1 of the Sixth Schedule and they read as follows: S.No Description of the goods Point of levy Rate of tax (per cent) (1) (2) (3) (4) THE FIRST SCHEDULE Goods in respect of which single point tax is leviable under sub-section (2) of section 3: 70 (a) All kinds of foreign liquors, that is to say, wines, spirits and beer im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt public warehouses wherein dutiable goods may be deposited, while section 58 empowers him to license private warehouses wherein dutiable goods imported by or on behalf of the licensee, or any other imported goods in respect of which facilities to deposit in a public warehouse is not available, may be deposited. 14.. From a cursory perusal of the provisions, as aforesaid, it is thus clear that the import becomes complete as and when the goods sought to be imported reached the territorial waters of India and subsequently bonded in a warehouse, public or private for the storage of the goods so imported. 15. In the case on hand, ship-stores imported by the petitioner, after crossing the territorial waters had been bonded in the private warehouse situate at No. 87, Moore Street, Madras-1. Thus, the first primordial requisite of subitem (a) of item 70 of the First Schedule is present. 16.. As stated earlier, the presence of such a requisite alone is not sufficient for attraction of the tax liability under the said item and what is further required is such ship-stores must have to be dealt with under the Tariff Act or under any other law for the time being in force relating to the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the time being in force, all imported goods unloaded in a customs area shall remain in the custody of such person as may be approved by the Collector of Customs until they are cleared for home consumption or are warehoused or are transhipped in accordance with the provisions of Chapter VIII. (b) Sub-section (2) prescribes for the maintenance of records in respect of the custody of the goods imported and such goods shall not be permitted to be removed from the customs area or otherwise dealt with, except under and in accordance with the permission in writing of the proper officer. (c) Section 69 is relatable to clearance of warehoused goods for exportation. Sub-section (1) thereof prescribes that any warehoused goods may be exported to a place outside India without payment of import duty, if (a) a shipping bill or a bill of export has been presented in respect of such goods in the prescribed form; (b) the export duty, penalties, rent, interest and other charges payable in respect of such goods have been paid; and (c) an order for clearance of such goods for exportation has been made by the proper officer. (d) Sub-section (2) thereof starts with a non obstante clause, namel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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