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2019 (2) TMI 1628 - HC - CustomsProhibition on sale and distribution of cigarettes and other tobacco product manufactured by Indian manufacturers and suppliers - prohibition on duty free shops - benefit of section 32 of the COTPA - scope of 'Exports' - HELD THAT:- Respondent No.2 while selling the goods from its duty free shops at departure terminal hold themselves as exporters of the goods and therefore it falls under the ambit of “exporter” as defined in section 2(20) of the Customs Act, 1962. Applying the definition provided in the Customs Act, in this context, the goods supplied to the duty free shops by the Indian and international manufacturers / suppliers are 'exported goods', and on reading this definition in conjunction with the definitions of exporter, it is clear that the duty free shop operator is the “exporter” and the supply of goods to the international passengers is an export - the export oriented units which undertake to export their entire quantity of goods and services, are permitted to do so by setting up retail outlets, i.e., duty free shops, at international airports. Even as per the FTP of India, sales undertaken from the said duty free shops are export and the duty free shop operator is the exporter. It is also worth to mention that COTPA itself provides for reasonable restriction wherever the legislature intended to impose such restriction. The exemption provided under section 32 of the COPTA for export of tobacco product is rightly conferred on the duty free shops and challenges to the provisions of the COPTA cannot be entertained - petition dismissed - decided against petitioner.
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