In Brief
Vellanki Frame Works, an importer, claimed exemption from sales tax on transactions involving timber purchased from foreign suppliers. The company alleged it acted as an agent transferring goods via bills of lading endorsements on high seas before goods reached Indian customs frontiers. The Commercial Tax Officer and High Court found that only Vellanki filed bills of entry for customs clearance and was assessed customs duty, with no evidence in official records (Import General Manifest) of any end-buyer as the actual importer. The Supreme Court held the alleged high seas sales unsupported by official documentation were not genuine. Once goods cleared customs as local goods, subsequent sales to end-buyers in other states were inter-State sales taxable under the Central Sales Tax Act, not exempted import sales. Appeals dismissed.
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