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of <h1>Delhi High Court Upholds Tribunal Decision on Exemption for Sales in Import Process</h1> The Delhi High Court affirmed the Sales Tax Appellate Tribunal's decision in a case where the assessee acted as an agent for license holders in importing ... - Issues:1. Whether the assessee acted as an agent on behalf of the license holdersRs.2. Whether the sales in dispute were in the course of import and exempt from sales taxRs.Analysis:The judgment pertains to a case where the Sales Tax Appellate Tribunal referred two questions to the Delhi High Court for opinion. The first issue was whether the assessee acted as an agent on behalf of the license holders. The Tribunal found that the assessee imported goods on behalf of license holders as an agent, based on the conditions outlined in the letters of authority issued by the Controller of Imports and Exports. The assessee imported typewriters and supplied them to license holders, maintaining that it acted solely as an agent. However, the authorities below viewed the transactions as two distinct contracts, leading to a profit earned by the assessee on sales to license holders.Regarding the second issue of whether the sales were in the course of import and exempt from sales tax, the Tribunal ruled in favor of the dealer. The Tribunal highlighted that the goods imported were required for the use of the importers, who were not allowed to transfer them. The Tribunal emphasized the role of the assessee as an intermediary or agent, facilitating the import of goods for license holders. It concluded that the sales were in the course of import, as the goods remained the property of the license holders throughout the process.The High Court, considering a similar case precedent, affirmed the Tribunal's decision. Citing the case law, the Court held that the sales were indeed in the course of import, aligning with the previous ruling. Consequently, the Court answered both questions in the affirmative, in favor of the dealer. No costs were awarded, and the reference was answered affirmatively, upholding the Tribunal's decision.
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