Sale during import
This query is : Resolved
Syed Anwar Hussain
(Querist)
26 June 2013
Is there taxability when goods are sold when they are stored in customs bonded warehouse, before clearance from warehouse?
PAWAN KUMAR
(Expert)
26 June 2013
Yes, taxability will be arise.
Syed Anwar Hussain
(Querist)
26 June 2013
Sir,
But it has been held that goods continue to be in customs barrier when they are in custom bonded warehouse. Import would be completed only when goods cross custom barrier and not when they land in india or enter territorial waters"
In judgement "state trading corporation v state of tamilnadu (2003) 129 STC 294 (MAD HC DB) also says" Thus , sale before clearance from customs bonded warehouse will be 'sale during import ' and will not be taxable.
So i am in confusion, please clarify me.
Sir,
But it has been held that goods continue to be in customs barrier when they are in custom bonded warehouse. Import would be completed only when goods cross custom barrier and not when they land in india or enter territorial waters"
In judgement "state trading corporation v state of tamilnadu (2003) 129 STC 294 (MAD HC DB) also says" Thus , sale before clearance from customs bonded warehouse will be 'sale during import ' and will not be taxable.
So i am in confusion, please clarify me.
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