FAG BEARING INDIA LTD Vs. STATE OF GUJARAT

JUDGEMENT

(1.) IT was for consideration of following two substantial questions of law formulated by this court, that the present appeal under section 78 of the Gujarat Value Added Tax Act, 2003, was admitted:

(2.) WE heard learned advocate Mr. Tanvish Bhatt for M/s. Wadia Ghandy and Company for the appellant and Mr. Kabir A. Hathi, learned A.G.P. for the respondent -State.

(3.) NOTICING the relevant facts involved in the appeal, the appellantassessee, a company incorporated under the Companies Act, 1956, was a subsidiary of a German company and was engaged in manufacture and resale of bearings. The assessee was a registered dealer under the provisions of the Gujarat Sales Tax Act, 1969. It was the case of the appellant that the customers desirous of purchasing the goods manufactured by the German company used to place purchase orders with specifications asking the appellant to import the goods. On receipt of such purchase orders, after making inquiry from the company in Germany about the possibility of supply of the demanded goods and upon receiving the acceptance from the parent company, it would receive confirmation orders from the customers. The goods were thereupon imported from Germany and were delivered to such customers. The transactions performed in such manner were treated by the assessee as sale in course of import. According to assessee, therefore, it was not liable to tax under section 87 of the Gujarat Sales Tax Act, 1969 read with section 5(2) of the Central Act.