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2014 (7) TMI 277 - HC - VAT and Sales TaxLiability to sale tax - Rate of tax - Inter-State sale of the goods or not - supply of goods for execution of such turnkey projects at Bombay High - whether Bombay High, which is situated in the exclusive economic zone is part of the territory of India - violation of principles of natural justice - Held that:- though Union of India has certain rights over the exclusive economic zone, the Indian Union does not have sovereignty over such a region. Clause (a) to sub-section (7) of section 7, for example provides that the Union has, over the exclusive economic zone, sovereign rights for the purpose of exploration, exploitation, conservation and management of the natural resources. Sovereign rights are thus for the limited purposes provided therein. By virtue of clause (b) of subsection (7) of section 7 of the Maritime Zones Act it becomes further clear that as and when Union of India issues notification extending any enactment over the exclusive economic zone or part thereof such enactment extended is applicable as if the exclusive economic zone or part thereof to which it has been extended is a part of the territory of India. When the sale of goods took place at Bombay High, for which the goods moved from Hazira to Bombay High, such movement does not get covered within the expression "movement of goods from one State to another" contained in clause (a) of section 3 of the CST Act. It is clear that the goods had not been moved from one State to another since, in our opinion, Bombay High does not form part of any State of Union of India. - Decided in favour of assessee.
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