CALTEX INDIA Vs. STATE OF KERALA

JUDGEMENT

(1.) In view (1960) 11 S.T.C. 764 and (1961) 12 S.T.C. 429 the only contention urged before us in this case is that the supplies made to foreign ships in the Port of Cochin should be considered as not liable to sales tax on the ground that those ships are floating islands of the country whose flag they fly. There is no merit in this contention.

(2.) The concept of a floating island is only a metaphor, and the fallacy lies in mistaking the metaphor for a manifestation. The strongest expression of the concept is found in a statement of Blackburn, J :

(3.) What we are concerned with in this case are not foreign ships, public or private, on the high seas; but merchant ships of other nations within the territorial waters of this country. And all that we need say is that the concept of a floating island cannot be invoked for the avoidance of taxation under any domestic enactment. As pointed out in 262 US 100 :