Case Law Details
Larsen & Toubro Ltd Vs Union of India (Gujarat High Court)- The High Court examined in detail the provisions of the Maritime Zones of India Act, 1976 (MZA) and observed that Union of India had no sovereignty over the EEZ. The Union of India only had certain sovereign rights over the EEZ. The High Court further observed that MZA empowers the Central Government to issue specific notifications to extend the ambit of certain laws to any part of the EEZ and to make such provisions as are necessary for the enforcement of such laws in the EEZ.
Accordingly, for the purpose of the extension and application of the law, so notified, and for such limited purpose, EEZ shall deem to be a part of the territory of India. Hence, the High Court concluded that the movement of goods from Hazira to Bombay High was not covered within the expression “movement of goods from one State to another” ( Section 3(a) of the CST Act) since Bombay High did not form part of the territory of India in general sense, under MZA or any other law. Moreover no notification had been issued by the Government under the CST Act so as to extend the provisions of the CST Act to the EEZ. In the absence of such notification, the court held that the Gujarat VAT authorities could not demand tax under the CST Act treating the sale transaction under consideration as an interstate sale.
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SPECIAL CIVIL APPLICATION No. 5575 of 2011
LARSEN & TOUBRO LTD & 1 – Petitioner(s)
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