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2012 (2) TMI 5 - BOMBAY HIGH COURTBombay Sales Tax Act 1959 - whether sales made to vendee situated in the Mumbai High Region are sales in the course of export out of India – alternative contention of Revenue to tax it as local sale – assessee is a licensed manufacturer of Helium gas - sales of Helium gas to ONGC situated at Mumbai High – Held that:-Once the customs frontier stands extended to a territory, there can obviously be no export of goods to a territory which falls within the customs frontier. Thus, for period both before and after 15 January 1987, sale was not a sale in the course of export. See Aban Loyd Chiles Offshore Ltd & Anr. Vs Union of India & ors (2008 - TMI - 3611 - Supreme Court) Further, movement of goods from the State of Maharashtra to Mumbai High does not constitute a movement from one State to another State. Mumbai High does not form part of any State in the Union of India. Therefore it cannot be regarded as inter-state sale. In respect of treating it as local sale , we are firmly of the view that this issue did not arise out of the order of the Tribunal. The State has not sought to levy sales tax in the present case on the basis that there was a local sale. Having held that the State was not justified in bringing the sale to tax as a sale in the course of interstate trade and commerce, we are not called upon to decide any other hypothetical issue.
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