1973 (1) TMI 94

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....o them, the sales effected by them from bonded warehouses were not taxable for the reason that they were in the course of import. The assessing authority, however, took the view that the sales effected by the assessees from the bonded warehouses to the outgoing ships were taxable under the Madras General Sales Tax Act, as they were effected after the course of import had ended, and in that view he assessed the respondents for the year 1964-65 on a taxable turnover of Rs. 35,674.93 and for the year 1965-66 on a taxable turnover of Rs. 65,150.98. The assessing authority also levied a penalty of Rs. 1,271 for the year 1964-65 and a penalty of Rs. 2,250 for the year 1965-66 under section 12(3) of the Act. Both against the assessments as well as....

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....ier would not mean any geographical features like land or coast or limits of territorial waters, but would only mean the operation of the machinery of the customs department consisting of collection of duty and clearance of the goods, and held that as the goods imported from foreign countries had not been assessed to duty by the customs but were kept in the bonded warehouse without payment of customs duty and straightaway sold to ocean-going vessels by the assessees, they should be held not to have crossed the customs frontier. According to the Tribunal on the facts of this case, the course of import of the goods had not ended and the sales of the goods from the bonded warehouse by the assessees should, therefore, be treated as sales in the....