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2015 (6) TMI 1154 - HC - VAT and Sales TaxScope of section 5(2) of the CST Act - installation and for supply of accessories - whether the finding of the Tribunal that section 5(2) of the CST Act is attracted to the transaction in question is correct or not? Held that: - Section 5(2) of the CST Act provides that a sale or purchase of goods shall be deemed to take place in the course of import of the goods into the territory of India only if the sale or purchase either occasions such import or is effected by transfer of documents of title to the goods before the goods have crossed the customs frontiers of India - In the judgment reported in M/s.Binani Bros. (P) Ltd. v. Union of India [1973 (12) TMI 77 - SUPREME COURT OF INDIA], the question considered was whether the sales by the assessee to Government Department were in course of import and exempted under section 5(2) of the CST Act. Referring to the precedents, the Apex Court held that to occasion import there must exist such a bond between the contract of sale and the actual importation with each link inextricably connected with one immediately preceding it and that without such a bond a transaction of sale cannot be called a sale in the course of the import of goods into the territory of India. The genuineness of the documents produced are undisputed. Once the genuineness of these documents are accepted, it could definitely be concluded that in the import of the goods by the respondent, there exists a bond between the contract of sale land the actual importation and each link thereof is inextricably connected with one immediately preceding it. This, therefore, shows that in the transaction in question leading to import and the sale of the equipment to MMDC, all the requirements that are laid down by the Apex Court are satisfied. The order of the Tribunal concluding that section 5(2) of the CST Act is attracted to the case in hand is perfectly legal and does not merit any interference - revision dismissed.
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