9911796707
TMI Blog2002 (9) TMI 824X X X X Extracts X X X X X X X X Extracts X X X X ..... eels are to be delivered to concerned newspapers and the indentors being importers of newsprint reels, registration is a must for import of newsprint reels. The petitioner being an agent makes the import on behalf of the registered newspapers and the imported newsprint reels are thereafter delivered to the newspapers on payment. Accordingly the petitioner imported the newsprint reels for and on behalf of the Assam Tribune, Guwahati, Assam, and the newsprints were brought from Russia and 228 newsprint reels were stored at Central Warehousing Corporation, Maligaon, Guwahati, for delivery to the Assam Tribune. Out of the 228 newsprint reels, 134 numbers were delivered to Assam Tribune and balance 94 newsprint reels were lying in the Central Wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n submission of required bank guarantee, the seized reels were released to the petitioner. 3.. The case of the respondent-State on the other hand is that the petitioner imported 228 reels of newsprint from outside the State of Assam and had effected delivery of 134 numbers of reels during the period from May 9, 1997 to May 27, 1997 by way of sale. The petitioner is not a registered dealer under the Assam General Sales Tax Act, 1993 (for short "the Act") and he did not apply for registration as required and as such the petitioner was liable to pay tax on the sale of 134 reels of newsprint and hence the seizure. 4.. To the claims of the petitioner that the goods were imported for and on behalf of the Assam Tribune and 134 reels were sold to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Act. 6.. The petitioner in this case produced a copy of their offer, dated March 21, 1997 that contains the stipulation that imported goods will be delivered against payment only. In terms of the conditions offered, the Assam Tribune, Guwahati, accepted the same by their letter dated March 25, 1997 which has been produced by the petitioner. Petitioner also produced the copies of invoices, which show the name of Assam Tribune. Even the bill was in the name of Assam Tribune along with the importers code and excise import licence numbers. The petitioner had given the above details in their reply to the show cause notice. The then Superintendent of Taxes rejected the claim of the petitioner solely on the ground that the goods were not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only and to the extent of fixed quota. Payment of price and all expenses were made by the petitioner who stored such goods in warehouses belonging to the Central Warehousing Corporation, Maligaon, Guwahati, and paid storage charges. Upto this point of operation M/s. Assam Tribune (Pvt.) Ltd., had nothing to do with the import and didn't come into picture at all. Only when they required newsprint from time to time they took it from warehouse after paying the price of it. Invoices from foreign countries were however issued in the name of M/s. Assam Tribune (Pvt.) Ltd. One thing was found pertinent to mention here. There was no agency to supervise the entire operation of the petitioner, certain aspects such as whether the entire import was bro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales Tax, Ernakulam v. Indian Explosives Ltd. reported in [1985] 60 STC 310. The facts in that case are more or less identical and the apex Court observed as follows: "Having regard to the terms and conditions on which the respondent-assessee imported the goods and the manner in which the transactions were put through, it cannot be disputed that there was an integral connection between the sale to the local purchaser and the actual import of the goods from the foreign supplier. In other words it is clear that the movement of the goods from the foreign country (here the United States) to India was in pursuance of the conditions of the pre-existing contract of sale between the respondent-assessee and the local purchaser. If that be so the vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose a copy of the certificate granted by the concerned authority was also furnished. It is therefore, submitted that in view of the provisions of sub-clause (3) of rule 13 read with section 8(3)(v) of the Act, such sale was exempted from tax. 14. In view of the findings that the petitioner served as an importing agent only and the goods were imported into Assam and was stored for on behalf of the Assam Tribune and as such the petitioner is not liable to pay tax and the subsequent order imposing penalty is quashed. 15.. In view of the above, the impugned order as well as the order of the revisional authority is quashed. The goods have already been released in view of the bank guarantee submitted by the petitioner. The bank guarantee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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