TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 1278
X X X X Extracts X X X X
X X X X Extracts X X X X
....CGST/IGST/SGST from the duty free shops located in the arrival and departure halls of "International Airports" in India. Petitioner, therefore, claims that similar benefit should be granted to him so that he can sell the products to International passengers who commence their journey from Nagpur Airport and thereafter, depart from India from a transit International Airport in India from his shop located at the Domestic Security Hold Area at Nagpur. Learned Counsel for the petitioner submitted that since the process of tender for grant of such shop is in progress and in the event the petition is allowed, petitioner would be able to aggressively participate in the tender process and will be able to sell products without levy of taxes under the GST Legislation to International passengers, who, after purchasing these products from the shop, will be able to depart from India after taking connecting International flight from the transit International Airport. It is further submitted that a duty free operator operating in India imports goods like liquor, tobacco products, souvenirs, eyewear, watches, fashion, chocolates, perfumes etc. by filing import general manifest and Bill of Entry fo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ction by the Customs Authority. 4. The petitioner submits that with effect from July, 2017, the respondent no.1 promulgated and notified CGST, IGST and various State Governments promulgated SGST. That by virtue of enactment of the GST Legislations, more specifically Proviso to Section 5(1) of the IGST, an importer of goods is liable to levy of integrated tax on goods imported into India. In the case of IntraState supply, when the location of the supplier and the place of supply i.e. location of the buyer are in the same State, a seller has to collect both CGST and SGST from the buyer. The CGST gets deposited with Central Government i.e. respondent no.1 and SGST gets deposited with respondent no.2. The petitioner submits that, due to unique location and nature of business of the duty free shops in India, the duty free operator is neither charged IGST/customs duty on imports nor is required to collect tax under CGST and SGST on the supplies made to the International passengers. 5. In the background of case of petitioner as aforesaid, it is, therefore, prayed that petitioner be allowed to sell products to International passengers without duty and levy under CGST and SGST from the sh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oka (supra). We have also perused the two Orders of the CESTAT and of the Central Government following the case of Hotel Ashoka, which are relied upon by the petitioner. 9. The Government of India in case of Aarish Altaf Tinwala by its order dt.31.8.2018 dismissed the revision of applicant filed by International passenger on relying the case of M/s. Hotel Ashoka (cited supra) observing that : "8. The applicant has vehemently pleaded that once he has completed the immigration formalities, he is said to have entered Indian Territory. Thereafter, the goods purchased from the duty free shop situated in the Arrival Hall are not imported. Hence, any such purchases made from the duty free shop are not liable for imposition of customs duties. Therefore, the impugned goods have been wrongly confiscated by the Customs and should be released. 9. The Central Government is of the considered opinion that the contentions of the application are based on the erroneous belief and wrong interpretation of the law and settled legal positions. 10. Section 2(11), Section 2(25) and Section 2(27) of the Customs Act 1962 states as under :" Section 2 : Definitions - In this Act unless the context ot....
X X X X Extracts X X X X
X X X X Extracts X X X X
....said that the said goods had crossed the customs frontiers. The goods are not cleared from the customs till they are brought in India by crossing the customs frontiers. When the goods are lying in the bonded warehouses, they are deemed to have been kept outside the customs frontiers of the country and as stated by the learned senior counsel appearing for the appellant, the appellant was selling the goods from the duty free shops owned by it at Bengaluru International Airport before the said goods had crossed the customs frontiers. " "30. They again submitted that 'in the course of import' means 'the transaction ought to have taken place beyond the territories of India and not within the geographical territory of India.' We do not agree with the said submission. When any transaction takes place outside the customs frontiers of India, the transaction would be said to have taken place outside India. Though the transaction might take place within India but technically looking to the provisions of Section 2(11) of the Customs Act and Article 286 of the Constitution, the said transaction would be said to have taken place outside India. In other words, it cannot be sai....