TMI Blog2016 (9) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... nd only in appropriate cases, where the material is available justifying exercise of such extreme power. In the present case, it would prima facie appear that the goods stored by the petitioner in the bonded warehouse being sold before the import is completed, there would be no liability to pay value added tax on such transaction. Classification - Nickel Cathode - Nickel Full Plates - Held that: - there is no mismatch in the goods brought by the petitioner from abroad and that is sold to the Indian customers. Minor difference in description of the goods in two sets of documents can be attributed to different but synonymous terms being used by the same set of goods. The petitioner keeping the bank guarantee of ₹ 30 crores in fav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mports such goods from its overseas supplier i.e. M/s. Trafigura Pvt. Ltd. and such goods are sold to the customers in India. The goods, after landing, are stored in customs bonded warehouse situated at Gandhidham. From there the petitioner sales such goods to the domestic buyers. According to the petitioner, the sale takes place at the bounded warehouse and, therefore, outside the territory of India. The petitioner points out that there is always an agreement between the petitioner and the purchasers in India to transfer the goods under an Ex-bond agreement. It is only after said transfer in title that the goods are brought within the customs territories of India. According to the petitioner, therefore, on such transaction, no value added ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of the VAT Act. The goods are supplied by the foreign supplier to the petitioner. Upon arrival, the goods are stored in bonded warehouse. The transfer in title takes place at such warehouse in favour of the buyers in India. There is no liability to pay VAT on such sale. The authorities have, therefore, committed a serious error in attaching the goods on the ground that the petitioner has evaded duty. Counsel in this context, placed heavy reliance on the decision of Supreme Court in case of Hotel Ashoka vs Assistant Commissioner of Commercial Taxes ( supra). 6. With respect to this legal position, even the respondents do not seem to be harboring any serious doubt. The case of the authorities, as emerging from the pleadings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e power of provisional attachment where during the pendency of any proceedings of assessment or re-assessment of turnover escaping assessment, he is of the opinion that for the purpose of protecting the interest of Revenue, it is necessary to do so. However, such powers being in the nature of attachment before judgement need to be exercised with due care and caution and only in appropriate cases, where the material is available justifying exercise of such extreme power. In the present case, it would prima facie appear that the goods stored by the petitioner in the bonded warehouse being sold before the import is completed, there would be, as held by the Supreme Court in case of Hotel Ashoka vs Assistant Commissioner of Commercial Taxes ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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