Page 89 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : STERLITE TECHNOLOGIES LTD. 327
5. The above decision of the GST council is already envisioned in the pro-
visions of sub-section (12) of Section 3 of Customs Tariff Act, 1975 inas-
much as in respect of imported goods, all duties, taxes, cesses etc shall be
collected at the time of importation i.e. when the import declarations are
filed before the customs authorities for the customs clearance purposes. The
importer (last buyer in the chain) would be required to furnish the entire
chain of documents, such as original Invoice, high-seas-sales-contract, de-
tails of service charges/commission paid etc., to establish a link between
the first contracted price of the goods and the last transaction. In case of a
doubt regarding the truth or accuracy of the declared value, the department
may reject the declared transaction value and determination the price of the
imported goods as provided in the Customs Valuation rules.
13.1 The above circular is applicable in the present case. Similarly, we
find that, where, Bill of Entry/import declarations are not being filed with re-
spect to the goods so procured, GST would not be leviable.
14. With regards to the second query regarding leviability of GST on
outward supply from place of vendor to customer, it is to mention that the
thumb-rule for determining the taxability of any transaction is to ascertain
whether the transaction tantamount to ‘supply’ in terms of the provisions of law.
The term ‘supply’ has been defined at Section 7 of the CGST Act, 2017 which
reads as under :
(1) For the purposes of this Act, the expression “supply “ includes -
(a) all forms of supply of goods or services or both such as sale,
transfer, barter, exchange, licence, rental, lease or disposal
made or agreed to be made for a consideration by a person in
the course or furtherance of business;
(b) import of services for a consideration whether or not in the
course or furtherance of business; [and]
(c) the activities specified in Schedule-I, made or agreed to be
made without a consideration;
In the instant case, the applicant is selling goods for a consideration in the
course or furtherance of business and as such the transaction tantamount to
‘supply’ in terms of the definition of ‘supply’.
14.1 Once the test of supply is met with, the next step is to determine
whether the same is an intra-State supply or inter-State supply. In this regard it is
pertinent to examine the provisions of Section 7 of the IGST Act, 2017 which
reads as under :
7. (1) Subject to the provisions of Section 10, supply of goods, where the
location of the supplier and the place of supply are in -
(a) two different States;
(b) two different Union territories; or
(c) a State and a Union territory, shall be treated as a supply of
goods in the course of inter-State trade or commerce.
(2) Supply of goods imported into the territory of India, till they cross the
customs frontiers of India, shall be treated to be a supply of goods in the
course of inter-State trade or commerce.

GST LAW TIMES  16th July 2020  89