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TMI Blog2011 (9) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... l upholding the claim of exemption as High Sea Sales under Section 5(2) of the CST Act is legally sustainable. (ii) Whether in the facts and circumstances of the case, the finding of the Tribunal that the sale was effected by transfer of documents of title have been taken place before crossing the customs frontier is legally sustainable. 2. The Assessee herein is a dealer in pharmaceuticals and chemicals. On verification of accounts, it was seen that the Assessee claimed exemption on the turnover of Rs. 12,50,814 under Section 5(2) Central Sales Tax Act as representing High Sea Sales effected. In support of the claim, the Assessee filed Bill of Lading and High Seas Agreement and pointed out that the goods in question were cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pradesh High Court reported in 110 STC 394 Minerals and Metals Trading Corporation of India v. State of Andhra Pradesh, the Appellate Authority came to the conclusion that when the import documents produced revealed that the goods imported were sold on High Sea Sale basis as per the agreement entered into with the ultimate buyers and the goods were cleared by clearing and forwarding agents on behalf of purchasers, the assessment could not be upheld. Thus, the appeal was allowed. As against this, the Revenue went on appeal before the Sales Tax Appellate Tribunal, who concurred with the view of the Appellate Assistant Commissioner, thereby, disallowed the Revenue's appeal. Aggrieved by this, the Revenue is on revision before this Court. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue seeks to disallow the claim of exemption is that the Bill of Entry furnished by the Assessee and the one available with the Customs Department were at variance with each other, particularly as regards the name. As far as this contention is concerned, the first Appellate Authority pointed out that when the Bill of Lading endorsement was made even before the goods crossed the Customs Station, the sale thus concluded therein, on the mere contention of the Assessing Officer that the Bill of Entry had the Assessee's name and the Customs Duty was paid only on the imported value and not on the High Seas value, were without any merit. 10. Given the fact that the Bill of Lading is the document of title and admittedly it carri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to note that the Bill of Entry is never treated as a document of title under the Customs Act. Under Section 46 of the Customs Act - Entry of goods on importation - the importer has to file Bill of Entry before the proper officer, which may be for home consumption or for ware housing. Only on filing the Bill of Entry for home consumption that the goods are allowed to be cleared after the payment of required Customs Duty. "Importer" is defined under Section 2(26), which reads as follows:- 2(26) "Importer", in relation to any goods at any time between their importation and the time when they are cleared for home consumption, includes any owner or any person holding himself out to be the importer. 12. In the light of the said de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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