TMI Blog1975 (4) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 9,07,108.31 respectively. Out of the taxable turnover a sum of Rs. 6,37,605.36 represented the sales turnover of liquor, which was brought from Sikkim. In the pre-assessment notice dated 12th January, 1974, the assessing officer, in the view that Sikkim is a foreign country and foreign liquor was imported into India, proposed to levy sales tax on this turnover at 24 per cent under item 70(a) of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as the Act), and called upon the petitioner to file his objections, if any. The petitioner represented that the liquor sold by it was manufactured in the Sikkim distilleries, that it is an Indian-made foreign liquor, that this fact was certified by the Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law for the time being in force relating to duties of customs on goods imported into India and that, therefore, item 70(a) of the First Schedule to the Act was not applicable. He also, in this connection, relied on the treaty entered into between the President of India and His Highness the Maharaja of Sikkim in the year 1950. Item 70 of the First Schedule to the Act reads as follows: Description of goods Point of levy Rate of tax per cent "70(a) All kinds of foreign liquors, At the point of 24 that is to say, wines, spirits first sale in the and beer imported into India State. from foreign countries and dealt with under the Indian Tariff Act, 1934 (Central Act 32 of 1934) or under any other law for the time being in force relating to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gn liquor from Sikkim. It is not the case of the respondent that the petitioner has contravened the permission granted by the Collector of Madras and that, therefore, the first condition relating to the applicability of item 70(a) is not satisfied in this case. Even if there is any doubt on this question, we are of the opinion that the third condition is not satisfied in this case. As we have already pointed out, the foreign liquor imported from a foreign country should have been dealt with either under the Indian Tariff Act or under any other law for the time being in force relating to the duties of customs on the goods imported into India. It is seen from the treaty entered into between the President of India and His Highness the Maharaja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Sikkimese origin brought into India from Sikkim are not liable for any levy of import or other duty. The learned Government Pleader contended that foreign liquor is dealt with under the Indian Tariff Act and under the Customs Act and that the import is subjected to levy of customs duty. Article V of the Treaty only exempts goods from such levy. But on that ground it cannot be said that the import of liquor from Sikkim is not dealt with either under the Indian Tariff Act or under the Customs Act. Normally, though the import or export of goods is governed by the Indian Tariff Act or the Customs Act, permit for import or export under those Acts would be necessary. Even if the duty payable is nil, the import or export of such goods wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Act. The writ petition is allowed. There will be no order as to costs. W.P. Nos. 1646 to 1655, 1660 and 1661 of 1974. These writ petitions are filed by the same petitioner. The relief asked for in each one of these writ petitions is a writ of certiorari questioning the provisional assessment made for the year 1973-74. Under the provisional assessment orders, the assessing authority had levied sales tax at the rate of 24 per cent on the turnover relating to liquor of Sikkim origin under item 70(a) of the First Schedule to the Act. We have held in W.P. No. 389 of 1974 that the levy in respect of liquor imported from Sikkim could only be under item 70(b) of the First Schedule to the Act and not under item 70(a). In view of this jud ..... X X X X Extracts X X X X X X X X Extracts X X X X
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