- (1.) The appellant is the State Trading Corporation of India. It challenges the order of the High Court confirming the findings of the statutory authorities that the appellant was liable under the Andhra Pradesh General sales Tax Act, 1957, to pay tax in respect of the goods sold by it to various allottees. The goods in question had been imported. As per the directions of the Government of India, the imported goods were sold to persons to whom permits had been issued by the Government of India. The goods came by various ships from places outside India. The appellant contended before the authorities as well as in the High Court that the goods were sold by documents while in transit on the high seas. Accordingly, these goods came within the protection of article 286 (l) (b) of the Constitution and, therefore, the Sales Tax Act was not attracted in respect of these sales.
(2.) All the authorities found that there was no evidence to show that the sales occurred while the goods were on the high seas. The dates mentioned by the appellant as regards the arrival of the ships as well as the transfer of documents did not disclose the exact position of each ship at the time of the alleged sale. In the absence of any relevant and cogent evidence on the point, the authorities rejected the appellant's contention that the sales occurred while the goods were on the high seas. The authorities held there was no evidence that the sale had taken place before the goods were landed and allotments made to the persons holding the permits. According to the authorities, there was no sale of the goods until their arrival and discharge and permits were produced by the allottees.
(3.) Whatever be the validity of the finding regarding the question of sale being deferred till the allottees came forward with the permits, it cannot be gainsaid that the appellant produced no evidence to show that the goods were sold by documents while in transit and upon the high seas or anywhere else outside the waters of India.;