GUPTA TRADING CO. Vs. COLLECTOR OF CUSTOMS
LAWS(CE)-1986-11-32
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on November 13,1986

Appellant
VERSUS
Respondents

JUDGEMENT

- (1.)We are concerned with Civil Appeal No. 642(NT) of 1974, Civil Appeals Nos. 1798-1800 of 1981 and the Writ Petition No. 196 of 1974 along with Special Leave Petitions Nos. 12943-44 of 1985. All these will have to be disposed of on the main question stated hereinafter and these raise a common question, facts in all these matters are more or less identical except that certain assumptions of facts have been made in Special Leave Petitions Nos. 12943-44 of 1985 because in these there were no investigation of facts by the revenue authorities.
(2.)The question involved in all these, is, whether the sales in question were within the State of Tamil Nadu and as such subject to tax under the Tamil Nadu General Sales Tax Act, 1959, hereinafter called the 'Act'.
(3.)The dealers who are the petitioners in the writ petitions and are the appellants in the appeals and the petitioners in Special Leave Petitions are dealers in stores and were doing business as ship chandlers in the relevant years. The appellants / petitioners used to supply the goods imported as stores to foreign going vessels and other diplomatic personnel. The appellants/ petitioners imported these goods from foreign countries. At the time of import they complied with the statutory provisions of the Customs Act and other enactments relating to import of goods. They had given an undertaking to the concerned authorities to supply the imported goods to foreign going vessels and / or to diplomatic personnel and to receive the goods in custom bonded warehouse. Under S. 59 of the Customs Act, 1962 the importer of any dutiable goods which had been entered for warehousing and assessed to duty under S. 17 or S. 18 should execute a bond binding himself for a sum equal to twice the amount of the duty assessed on such goods (a) to observe all the provisions of the Act and the rules (b) to pay on or before a date specified in a notice of demand all duties, rent and charges claimable on account of such goods under the Act, and (c) to discharge all penalties incurred for violation of the provisions of the Customs Act and relevant statutes. For the above purpose, the Assistant Collector of Customs might permit an importer to enter into a general bond for such amount as the Assistant Collector of Customs might approve in respect of the warehousing of goods to be imported by him within a specified period.


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