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TMI Blog1975 (7) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... was controlled and it will have to be done under the directions of the Controller of Non-ferrous Metals. Established importers like the respondents have to distribute the zinc to such of those local purchasers to whom the Controller of Non-ferrous Metals had issued a permit. On 18th September, 1964, the Controller directed the Importers to sell the zinc that would be imported by them to M/s. India Metal and Metallurgical Corporation (hereinafter referred to as the linked customer) and adviced the importers to contract the said corporation to ascertain their requirements as regards the quantity and specification of the materials and the programme of delivery. Thereafter, the linked customer placed a purchase order and paid a portion of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the import and that therefore the turnover is liable to be taxed under the Tamil Nadu General Sales Tax Act. The point that arises for consideration is directly covered by an authority. The Supreme Court in Binani Bros. (P.) Ltd. v. Union of India [1974] 33 S.T.C. 254 (S.C.)., on almost identical facts, held that the sale could not be said to have occasioned the import of the goods. That case related to copper. The sale and distribution of copper was not free, but controlled and it will have to be distributed only under the directions of the Controller of Non-ferrous Metals or the Import Trade Control Authority to such of those licence- holders to whom such permission was given. The Supreme Court pointed out that placing of the orders by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew of the first part of section 5(2) of the Central Sales Tax Act. The respondents also contended before the Tribunal that in any case since the bills of lading relating to the goods were endorsed in favour of the linked customer before the goods have crossed the customs frontier, the sale in favour of the linked customer shall be deemed to have taken place in the course of Import within the meaning of the latter part of section 5(2), On the other hand, the learned Government Pleader contends that the sale had taken place after the goods had crossed the customs frontier and that, therefore, the sale cannot be deemed to be in the course of import. Though there Is a statement In the order of the Tribunal that the documents of title were han ..... X X X X Extracts X X X X X X X X Extracts X X X X
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