TaxTMI 
TaxTMI 
TaxTMI 
2019 (2) TMI 1628
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....a. The Petitioner is also seeking directions for initiating appropriate criminal / penal action under section 20 the COTPA against Respondent No.2. The Petitioner is seeking further direction to forthwith prohibit sale and distribution of cigarettes and other tobacco product manufactured by Indian manufacturers and suppliers at the duty free shops operated by Respondent No.2 until such time the health warnings as specified under the COTP Labelling Amendments Rules, 2014 are implemented. 3. Learned counsel for the Petitioner submitted that supply and retail sale of tobacco products at duty free shops operated by Respondent No.2 do not comply with the mandatory labelling requirements as specified in COTPA, COTP Labelling Rules, 2008 and COPT Labelling Amendment Rules, 2014. The Petitioner further submitted that duty free shops operated by Respondent No.2 procure tobacco products both from domestic and international suppliers and the same are sold at arrival and departure terminals of the Airport. The grievance of the Petitioner is that the said tobacco products are being permitted to be sold without insisting upon the compliance under the COTPA, COTP Labelling Rules, 2014 and COTP ....
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....ee shop operators. The word "export" under the COTPA is identical to the definition of word "export" under the Customs Act, 1962 and the IGST Act 2017, which read thus : COTPA :- section 2(d) - "export" with its grammatical variations and cognate expressions, means taking out of India to a place outside India" Customs Act, 1962 :- Section 2(18) - "export" with its grammatical variations and cognate expressions, means taking out of India to a place outside India. IGST Act, 2017 :- Section 2(5) - "export of goods" with its grammatical variations and cognate expressions, means taking out of India to a place outside India. 6. Respondent No.2 while selling the goods from its duty free shops at departure terminal hold themselves as exporters of the goods and therefore it falls under the ambit of "exporter" as defined in section 2(20) of the Customs Act, 1962. Applying the definition provided in the Customs Act, in this context, the goods supplied to the duty free shops by the Indian and international manufacturers / suppliers are 'exported goods', and on reading this definition in conjunction with the definitions of exporter, it is clear that the duty free sho....
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....d 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. Thus, before the goods were imported in the country, they had been sold at the duty free shops of the appellant. 18. In view of the aforestated factual position and in the light of the legal position stated hereinabove, it is very clear that no tax on the sale or purchase of goods can be imposed by any State when the transaction of sale or purchase takes place in the course of import of goods into or export of the goods out of the territory of India. Thus, if any transaction of sale or purchase takes place when the goods are being imported in India or they are being exported from India, no State can impose any tax thereon. 20. Upon perusal of the aforestated provision of Section 5 of....
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....shops shall be deemed to be the area beyond the customs frontiers of India and the transaction would be said to have taken place outside India. 12. The aforesaid judgments are clearly applicable only in respect of supplies to or from duty free shops situated after the passenger crosses the immigration counter beyond the Customs Frontiers, at arrival or departure hall of International Airport Terminals, where the transaction would be said to have taken place outside India. The international travel of incoming or outgoing passenger after immigration clearance would be beyond any doubt. In such event, whether it is the sale / purchase / supplies of goods or services, to or from such duty free shop, the same is said to be taken place outside India . Hence, the same would be a nontaxable supply under section 2(78) of CGST/SGST and such duty free shops located at the international airports would be in "non-taxable territory" as defined in section 2(79) of CGST/SGST. As per section 2(24) of IGST, the same meaning as given in CGST/SGST applies for IGST as well." 11. In the matter of DFS India Private Limited vs. Commissioner of Customs (Order dated 12th March 2010 in SLP (C) No. 2436 ....