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TMI Blog2018 (12) TMI 1278X X X X Extracts X X X X X X X X Extracts X X X X ..... ssenger travelling on a domestic flight from Nagpur may or may not travel abroad, and the Customs Authorities would not be able to have effective check and control to verify whether the goods purchased from Domestic Airport at Nagpur are actually taken abroad by the passenger. Petition dismissed. - Writ Petition No. 8034 Of 2018 - - - Dated:- 28-11-2018 - P. N. Deshmukh And Mrs. Swapna Joshi, JJ. Mr. S. Kantawala, Advocate with Mr. A.M.Sudame, Advocate for Petitioner. Mr. S.A.Chaudhari, Advocate Mr. A.D.Sonak, A.G.P. for Respondent. ORAL JUDGMENT P. N. Deshmukh, 1. Present petition is filed by the petitioner seeking issuance of Writ of Mandamus directing the respondents to exempt the petitioner from charging applicable taxes under the GST Legislations on sale of cosmetic products, perfumes etc. to the International passengers and claim refund of any input tax paid on input supplies and input services from the retail shop which the petitioner intends to set up at the Domestic Security Hold Area at Dr.Babasaheb Ambedkar International Airport (hereinafter referred to as the Nagpur Airport ). 2. It is submitted that presently sale of similar p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of duty from where they are sold to International passengers without payment of duties and taxes. 3. According to petitioner, the entire movement of goods from Special warehouse to duty free shops for the purpose of sale at arrival and departure strictly happens as per the Warehousing provisions under Chapter IX of the Act and under customs supervision and control. As per Section 71 of the Act, the goods so deposited can either be cleared from the warehouse for home consumption (u/s.68) or for export (u/s.69) or for removal to another warehouse or otherwise provided in this Act. The petitioner submits that the goods so warehoused are then brought to the dutyfree shop without payment of duty under escort of the bond Officer. The goods are then sold at the duty free shops at arrival and departure terminals. The subsequent sales at duty free shops are under general supervision and control of the Customs Officer and that the goods are sold at the duty free shops to the International passengers at the arrival and departure terminals by issuing a sales invoice which disclose inter alia the name of the passenger, flight details, passport number, etc. and is available for inspection b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assengers take their fights from the Nagpur Airport to travel outside India through a transit International Airport. An International passenger who departs from the Nagpur Airport to a transit International Airport wherefrom he/she can embark the International flights to foreign destination can get their baggage through checked in at the Nagpur Airport and the Nagpur Airport also issues the said International passenger boarding passes for the flight which travels to the transit International Airport as well as the International flights which departs India. The petitioner submits that once an International passenger through checks in and receives boarding passes at the Nagpur Airport, the products can be sold to him/her without duty and GST. The only difference here is that the International passengers, after reaching the transit International Airport, will complete the immigration formalities and will depart from India after embarking the International flight from the transit International Airport. 8. We have carefully considered the submissions of the petitioner in the instant petition and have perused the provisions of Article 286 of the Constitution of India, GST laws, Custom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all be taken out of a warehouse except clearance for home consumption, exportation or removal to another warehouse or as otherwise provided by this Act. It is thus clear that such goods need to suffer Customs duty on being exported by duty free shops and imported by passenger in terms of Section 77 of the Customs Act, 1962. The contention of the Applicant that he had entered Indian Territory after immigration formalities and having bought goods within the confines of Indian Territory and is, therefore, not liable to pay customs duty is not legally sustainable. 12. The Hon'ble Supreme Court of India in the case of M/s. Hotel Ashoka vs. the Assistant Commissioner of Commercial Taxes and Anr. (Civil Appeal No.2560 of 2010) reported in (2012) 3 SCC 204 has held that 18. It is an admitted fact that the goods which had been brought from foreign countries by the appellant had been kept in bonded warehouses and they were transferred to duty free shops situated at International Airport of Bengaluru as and when the stock of goods lying at the duty free shops was exhausted. It is also an admitted fact that the appellant had executed bonds and the goods, which had been brought from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annel without declarations and without payment of customs duty, the department has rightly proceeded against the Applicant. 11. The Central Government has thus applied the ratio laid down by Hon'ble Supreme Court in Hotel Ashoka (supra) and correctly held that the transactions effected at the duty free shops at the arrival or departure of the International Airports in India located after the passenger clears immigration might have taken place within the geographic territory of India, but for the purposes of levy of Customs Duties or any other taxes, the area of duty free shops shall be deemed to be the area beyond the customs frontiers of India and the transaction would be said to have taken place outside India. 12. The aforesaid Judgments are clearly applicable only in respect of supplies to or from duty free shops situated after the passenger crosses the immigration counter beyond the Customs Frontiers, at arrival or departure hall of International Airport Terminals, where the transaction would be said to have taken place outside India. The International travel of incoming or outgoing passenger after immigration clearance would be beyond any doubt. In such event, whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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