Page 148 - GSTL_20th August 2020_Vol 39_Part 3

362 GST LAW TIMES [ Vol. 39
6.8 Section 2(23) of the Customs Act, 1962 (‘Customs Act’) defines “im-
port” as :
“(23) “import”, with its grammatical variations and cognate expressions,
means bringing into India from a place outside India;”
This definition is also reflected at Section 2(10) of the IGST Act.
6.9 The term “India” has been defined in Section 2(27) of Customs Act
as :
“(27) “India” includes the territorial waters of India;”
Thus, as per Section 2(27) of the Customs Act, India would include the territorial
waters of India for the purpose of the Customs Act.
6.10 In view of the above definition, it is submitted that the term “im-
port” signifies etymologically “to bring in”. To import goods into India, i.e. the
territory of India, therefore means to bring into the territory of India goods from
outside “India”. Thus, the above definitions make it clear that no sooner the
goods are bought into the territorial waters of India from outside India (i.e. from
outside of territorial waters of India), import is said to have taken place.
6.11 In the case of J.V. Gokal & Co. Pvt. Ltd. v. Assistant Collector of Sales
Tax (Inspection) [1999 (110) E.L.T. 106 (S.C.)], the Hon’ble Court held that “the
course of import, therefore, starts from one point and ends at another. It starts when the
goods cross the customs barrier in foreign country and ends when they cross the customs
barrier in the importing country.”
6.12 The question as to when an import is said to be completed has
been answered by the Apex Court in the case of Garden Silk Mills v. Union of India
[1999 (113) E.L.T. 358 (S.C.)]. In Para 16, the Hon’ble Court held that :
“16. It would appear to us that the import of goods into India would com-
mence when the same cross into the territorial waters but continues and is com-
pleted when the goods become part of the mass of goods within the country; the
taxable event being reached at the time when the goods reach the customs
barriers and the bill of entry for home consumption is filed.”
(emphasis supplied)
6.13 In the context of sale in the course of import, the Hon’ble AP HC
in the case of Minerals & Metal Trading Corporation v. State of Andhra Pradesh [1999
(106) E.L.T. 23 (A.P.)], held that :
“Therefore, irrespective of the fact whether duty is paid or not, when once
the bill of entry is filed and the imported duty is assessed, then only the
goods can cross the limits of the customs port, therefore, any transfer of
documents or title before the clearance of the goods by the customs authori-
ties on making the assessment of goods would amount to a sale in the
course of import, as after the assessment is made and on filing of the bill of entry
the goods get mingled with the general mass of goods and merchandize of the coun-
try. The goods get the eligibility to be declared as local goods.”
(emphasis supplied)
6.14 From analysis of the aforesaid definitions and judicial precedents
under Customs law and Sales Tax law, the following points emerge :
(a) ‘Import’, as defined under the Customs Act, means bringing goods
into India i.e. into the territorial waters of India;
(b) The import is completed when the goods become part of the mass of
goods within the country. [Ref. : Garden Silk Mills (supra)];
(c) Once the goods get mingled with the general mass of goods and
merchandize of the country, they lose the character of imported
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