TMI Blog2018 (11) TMI 1354X X X X Extracts X X X X X X X X Extracts X X X X ..... tained by the Customs Authorities on the basis of the agreements and the invoices raised by the importer. The documents having evidenced the sale before the import was completed and the transfer of title to the goods; there cannot be any tax levied on the transaction as one carried out in the State. The Assessing Officer had granted exemption only to the sale effected by the assessee to the units in SEZ against Form 43 and the rest of the sale was not granted exemption under Section 5(2) of the Act, which according to us was not appropriate - revision dismissed - decided against Revenue. - OT. Rev. No. 44 of 2014 And OT. Rev. No. 50 of 2014 - - - Dated:- 23-10-2018 - MR K. VINOD CHANDRAN AND MR ASHOK MENON, JJ. For The Petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the course of import and exemption from payment of sales was claimed by virtue of Section 5(2) of the CST Act. 3. The Assessing Officer rejected the claims vide Annexure A orders, and completed the assessment under Section 24(1) of the Kerala Value Added Tax Act, 2003 (for short KVAT Act ) holding that majority of the sales were effected after completion of the import. 4. First appeals filed by the assessee failed. The common order dated 07.06.2010 of Deputy Commissioner (Appeals), Commercial Taxes, Ernakulam is at Annexure B. 5. Second appeals were preferred by the assessee before the Tribunal and the Tribunal holding that the sale of the entire stock was effected prior to the goods crossing the customs frontiers of India , ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the sale was after it was brought out of the customs frontiers and the Tribunal has misinterpreted the customs frontiers as contemplated under Section 2(ab) of the CST Act and 'customs port' and 'customs station' as defined under Section 2(12) 2(13) respectively of the Customs Act. 7. We heard the learned Senior Government Pleader and the learned Counsel appearing for the assessee. 8. It has to be borne in mind that the document by virtue of which the goods were taken delivery of by the purchasers are not the agreements of sale, but the bill of entry for home consumption which was facilitated by the agreements. The finding of the Assessing Officer is that an insufficiently stamped instrument of conveyance, even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the learned Senior Government Pleader on the point that the agreements pertain to the sale of the imported furnace oil. 10. Garden Silk Mills Ltd. (supra) was concerned with whether landing charges, which are imposed at or after the time of the discharge of the goods and prior to the clearance being granted under Section 47 of the Act, have to be included in determining the value thereof for the purpose of assessing the customs duty which would be chargeable. Finding it to be so includable it was held that Section 45 to 47 of the Customs Act, clearly show that after the imported goods are discharged from the vessel at the wharf the importer cannot immediately take delivery thereof. The imported goods remain in the custody of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SCR 787 at page 803 that in the case of duty of customs the taxable event is the import of goods within the customs barriers. In other words, the taxable event occurs when the customs barrier is crossed. In the case of goods which are in the warehouse the customs barriers would be crossed when they are sought to be taken out of the customs and brought to the mass of goods in the country . Admittedly this was done after 4-10-1978. As on that day when the goods were so removed additional duty of excise under the said Ordinance was payable on goods manufactured after 4-10-1978. We are unable to accept the contention of Mr Ramachandran that what has to be seen is whether additional duty of excise was payable at the time when the goods landed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontiers and the goods brought into the mass of goods within the Country. 13. The decisions referred to above clearly declare as to when the import is completed. There is no requirement that, to avail the benefit of Section 5(2) of the Central Sales Tax Act, the sale in the course of import should be a high sea sales, if it is not a sale that occasions such import. The Assessing Officer, labours under a misapprehension that, to avail the benefit under Section 5(2) the purchase by the end user should either occasion the import or it should be by transfer of documents when the goods are in the high seas, precisely before it enters the territorial waters. This understanding is contrary to the words employed in Section 5(2). The second limb o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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