MADRAS MARINE CO Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The four revisions relate to the assessment years 1969-70, 1970-71, 1971-72 and 1972-73 and are preferred by the same assessee.

(2.) The common question that arises for consideration is whether the turnover representing sales of liquor imported by the assessee, and kept in the warehouse without payment of customs duty to foreign vessels for consumption during voyage after the vessel crosses the Indian border is exigible to tax under the Andhra Pradesh General Sales Tax Act.

(3.) The assessee, M/s. Madras Marine Co., Visakhapatnam, is a dealer in bonded stores and ship chandlers. They import liquor from outside India and supply them to foreign vessels. The business is transacted in the following manner. The goods imported are kept in a bounded warehouse under the supervision of customs authorities. No customs duty is paid. On receipt of orders from the ships Master, bills are prepared and goods are realised. The Customs Officer accompanies the goods, keeps them in a locker of the ship under the customs seal with an understanding that the seals would be opened and goods made available for consumption only after the vessel travels beyond the territorial waters of India. On these facts, it was contended by the assessee that the sale did not take place within the State and the sale was in the course of export and as such not exigible to tax. Both the contentions were repelled by all the three authorities including the Sales Tax Appellate Tribunal.