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1969 (5) TMI 47 - SC - VAT and Sales TaxWhether the turnover, which was the subject of consideration by the High Court, was liable for sales tax under the Madras General Sales Tax Act, 1959? Held that:- Appeal allowed. The expression "customs frontiers of India" in section 5 of the Central Act, in our opinion, must be construed in accordance with the notification issued by the Central Government under section 3-A of the Act, on August 6, 1955, read with the Proclamation of the President of India dated March 22, 1956. So applying the definition of "customs frontiers" it is clear that, in the instant case, the sales were effected by transfer of documents of title long after the goods had crossed the customs frontiers of India. We have already stated that the ships carrying the goods in question were all in the respective harbours within the State of Madras when the sales were effected by the assessees by transfer of documents of title to the buyers. If so, it follows that the claim made by the assessees that the sales in question were sales in the course of import has been rightly rejected by the assessing authority. Unfortunately, though various aspects seem to have been pressed before the High Court by the State of Madras, this notification of August 6, 1955, issued by the Government of India, defining the "customs frontiers" of India, was not brought to the notice of the High Court.
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