Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + AAR VAT and Sales Tax - 2016 (10) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (10) TMI 1230 - AAR - VAT and Sales TaxLiability of VAT - transaction of sale - section 55 of MVAT ACT, 2002. Whether the sale of imported goods by the Applicant to the license holders from a customs bonded warehouse (hereinafter referred to as warehouse)is a sale, liable to be taxed under the provisions of the Act? Whether ex-bond sales of imported goods effected to duty free shops is a 'sale in the course of imports' and hence exempt from the levy of tax under Act? Presently, dealer is not effecting this type of transactions? Whether the Applicant is liable to discharge tax in respect of the above mentioned sales transactions? Held that:- The sale from warehouse to duty free shop is neither export nor sale in the course of import. Hence, such sale is taxable in the state of Maharashtra at the schedule rate prescribed under MVAT ACT, 2002. The sale to duty free shop cannot be treated as export. It does not have destination where it can be said to be imported, and so long as it does not satisfy this test laid by Hon apex court in the case of Burmah Shell Oil Storage and Distributing Co. [1960 (9) TMI 70 - SUPREME COURT OF INDIA], it cannot be said that the sale was in the course of export. Ruling:- Sale of imported goods by the Applicant to the license holders from a customs bonded warehouse - Held that:- Sale liable to tax as per relevant schedule entry under MVAT Act. Whether ex-bond sales of imported goods to duty free shops is a 'sale in the course of imports' and hence exempt from the levy of tax under MVAT Act? - Held that:- The exbond sale to duty free shop is neither sale in the course of import nor it is export. Hence, sale to duty Free shop is liable to tax as per schedule entry D-3 appended to MVAT ACT, 2002. Whether the Applicant is liable to discharge tax in respect of the above mentioned sale transaction? - Held that:- The applicant is not holding any license under State Excise Act (Prohibition Act).Hence, liable to tax as per schedule entry D-3 appended to MVAT ACT, 2002.
|