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TMI Blog2016 (8) TMI 1075X X X X Extracts X X X X X X X X Extracts X X X X ..... the imposition of tax on any sale or purchase of any goods of which sale or purchase takes place inter alia in the course of import of the goods into the territory of India or the export of the goods outside such territory If the situs of the inter-State purchases and imports is not within the State then such purchases are not a “purchase” as defined under section 2(28) of the BST Act. This being a case, it would therefore logically follow that the term “purchase price” as defined in section 2(22) is applicable only to purchases made within the State and would not be applicable to purchases which take place in the course of import of the goods into the territory of India or export of the goods out of such territory (section 75 of the BST Act). This being the clear position, as can be discerned from the statutory provisions as set out in the BST Act, the customs duty paid on the goods imported into the territory of India by the Respondent herein, cannot be held to be a part of the import purchase price for the purposes of deduction or set off under Rule 41D. BST Act is a State Legislation and does not have extra-territorial jurisdiction. This is clear from the preamble of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Respondent herein (M/s Bajaj Tempo Ltd.) on goods imported by it from out of the country, and which are used in the manufacture of their vehicles, should be included in the definition of the words purchase price as set out in section 2(22) of the BST Act. 3. The brief facts giving rise to the present controversy are that the Respondent herein (M/s Bajaj Tempo Ltd.) is a manufacturer of motor vehicles, especially three-wheelers and parts thereof. It is duly registered under the provisions of the BST Act as also the Central Sales Tax Act, 1956 (for short, the CST Act ). The Respondent has its factory in Maharashtra and branches in other States. The vehicles manufactured by the Respondent are sold in and from Maharashtra as also transferred to branches in other States for sale over there. 4. For the financial year 1998-99, the Repondent herein was assessed under the BST Act and which gave rise to an assessment order dated 28th January, 2002 passed by the Senior Assistant Commissioner of Sales Tax (Assessment), A-22, Pune Division, Pune. This assessment resulted in a refund of around ₹ 15.31 lacs to the Respondent. 5. Being aggrieved by the Assessment Order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been defined in section 2(22) of the BST Act. It means the amount of valuable consideration paid or payable by a person for any purchase made, including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof. She submitted that Explanation I to the said definition categorically states that the amount of duties levied or leviable on goods inter alia under the Customs Act, 1962 shall be deemed to be a part of the purchase price for such goods. Laying heavy stress on this Explanation, the learned Assistant Government Pleader contended that on a true and correct interpretation of the definition of purchase price read with Explanation I thereto, the same would clearly include the amount of customs duty paid or payable under the Customs Act, 1962. This being the case, Ms Palsuledesai contended that the submission made on behalf of the Respondent that only the cost of material purchased from outside the country should be considered while reducing set off under Rule 41D, is without any substance. According to her, while effecting the purchase of the said goods from abroad, the Respondent herein had to pay customs duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er or any other person. Explanation II stipulates that the purchase price shall not include sales tax, turnover tax, surcharge and resale tax paid or payable by a person in respect of any such purchase. 12. Thereafter, the word sale has also been defined in section 2(28) which reads as under :- 2. Definitions In this Act, unless the context otherwise requires, (28) 'sale' means a sale of goods made within the State for cash or deferred payment or other valuable consideration and includes any supply by a society or club or an association to its members on payment of a price or of fees or subscription but does not include a mortgage, hypothecation, charge or pledge and the words 'sell', 'buy' and 'purchase' with all its grammatical variations and cognate expressions, shall be construed accordingly. Explanation For the purpose of this clause - (a) a sale within the State includes a sale determined to be inside the State in accordance with the principles formulated in sub-section (2) of section 4 of the Central Sales Tax Act, 1956 (LXXIV of 1956); (b)(i) every disposal of goods referred to in the Explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourse of the import of the goods into the territory of India or export of the goods out of such territory, or (iii) in the course of inter-State trade or commerce, shall be determined in accordance with the principles specified in sections 3, 4 and 5 of the Central Sales Tax Act 1956. (emphasis supplied) 14. Section 75 clearly stipulates that nothing in the BST Act or the Rules made thereunder shall be deemed to impose or authorise the imposition of tax on any sale or purchase of any goods of which sale or purchase takes place inter alia in the course of import of the goods into the territory of India or the export of the goods outside such territory. Section 75 further provides that the provisions of the BST Act and the Rules framed thereunder shall be read and construed accordingly. 15. On a conjoint reading of the aforesaid provisions, it is clear that if the situs of the inter-State purchases and imports is not within the State then such purchases are not a purchase as defined under section 2(28) of the BST Act. This being a case, it would therefore logically follow that the term purchase price as defined in section 2(22) is applicable only to purchases m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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