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1985 (8) TMI 72 - SC - VAT and Sales TaxWhether the sales effected by the respondent-assessee in the three concerned years of goods imported and supplied to customers on the strength of Actual Users' Import Licences of the customers were exempt from sales tax under the Kerala General Sales Tax Act, 1950, on the ground that these were sales "in the course of import of the goods into the territory of India"? Held that:- Having regard to the terms and conditions on which the respondent-assessee imported the goods and the manner in which the transactions were put through, it cannot be disputed that there was an integral connection between the sale to the local purchaser and the actual import of the goods from the foreign supplier. In other words it is clear that the movement of the goods from the foreign country (here the United States) to India was in pursuance of the conditions of the pre-existing contract of sale between the respondent-assessee and the local purchaser. If that be so the view of the Tribunal and the High Court that the sales in question were in the course of import will have to be upheld. Appeal dismissed.
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