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2015 (6) TMI 1058 - HC - VAT and Sales TaxDemand of sales tax / vat on sale of aviation turbine fuel (ATF) to foreign aircrafts - Constitutional validity of notification - Held that:- there may be various other airlines originating from foreign countries which are not parties to the said convention, but in order to identify those airlines which originate from the countries which are parties to the convention,such a declaration is required. Therefore I do not find that notification dated December 3, 2003 is illegal, or it lacks competence and it is contrary to the provision of the Central enactment. On the contrary, the requirement of issuance of declaration by a purchaser of ATF and lubricants, i.e., aircraft of a foreign country which is a party to the Convention on International Civil Aviation or which has entered into air services or air transport agreement with India and operating international air services to or from India would get endorsed. Therefore there is a distinct purpose in insisting for production of such declaration made by the State Government and hence the contention raised by the petitioner's counsel on the vires of the said notification is without any substance. Validity of assessment orders - Held that:- in respect of certain transactions made to certain airlines there are declarations produced and in respect of other transactions of the very same airline, it may not be produced is the submission of the petitioner's counsel. It is also noted that in respect of airlines of certain foreign countries no declaration may have been produced. This aspect would have to be examined and there may be certain cases where the declarations have not been produced with regard to certain aircrafts. Petitioner would have to be given an opportunity to produce evidence pointing out the list of countries which are parties to the convention or which have entered into agreements with India and in respect of whose aircrafts thesale of ATF and lubricants have taken place to the satisfaction of the third respondent/authority. If the third respondent is satisfied on the material to be produced by the petitioner, then it could consider the grant of exemption in respect of those transactions. But if the third respondent is of the opinion that the additional materials to be produced by the petitioner are not sufficient to come to a conclusion that an exemption would have to be granted, then in that case it can grant some time to the petitioner to produce requisite declarations from foreign airlines and thereafter proceed to consider the matter afresh and pass a fresh order in that regard. - Matter remanded back.
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