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2015 (6) TMI 1265 - AAR - VAT and Sales TaxClassification of goods - rate of tax on sale of IT Products/Cables and other Apparatus from their Trading Unit located in Free Trading and Warehousing Zone (FTWZ), J Matadee FITZ, Mannur and Vallarpuram Village, Sriperumbudur Taluk, Kanchipuram District, Tamil Nadu to another trading unit in the same FTWZ, developed under Indian SEZ Act, 2005 - HELD THAT:- In order to effect bond-to-bond transactions involving goods or services, trader’s warehouse located ina SEZ/FTWZ has to apply to the Appropriate Customs. Authority having jurisdiction over the area where the SEZ/FTWZ is located, to operate the warehouse and to transact from thereon’ in respect of goods or services. The depositor of the warehoused goods, to transfer the bonded goods from one warehouse located in SEZ/FTWZ to another warehouse located in same or different SEZ/FTWZ, has to get permission from the Customs Authorities so authorised, as per the legal formalities, prescribed by the Customs Act, 1962. If all the provisions under SEZ Act, 2005 TN SEZ (Special Provisions) Act, 2005, Section-5(1) and (2) of CST Act, 1956 and Section-67 of the Customs Act, 1962, the transfer of bonded goods from one warehouse in FTWZ to another bonded warehouse located in the same FTWZ or another FTWZ is to be treated as having taken place beyond the Customs Frontiers of India not cleared for home consumption and would therefore not falling under the purview of either the TNVAT Act, 2006 or the CST Act, 1956. Summarily, the transfer of warehoused goods in a bonded warehouse located in FTWZ to another warehouse located in same or another FTWZ, is to be treated as sale or purchase effected in the deemed foreign territory, i.e. beyond the Customs Frontiers of India, not liable to tax under TNVAT Act, 2006 or under CST Act, 1956. It may therefore be clarified that the sale of IT products/cables ‘and other apparatus from their Trading Unit located in Free Trading and Warehousing Zone (FTWZ), J Matadee FTZ, Mannur and Vallarpuram Village, Sriperumbudur Taluk, Kanchipuram District by the applicant -dealer to another dealer who is also having trading and warehousing facility in the same FTWZ or in another FTWZ is eligible for exemption under TNVAT Act, 2006. Dated this the 22nd day of June 2015.
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