Shop in security hold area of an Indian airport is in India
Facts and Issues of the case
The applicant is in the business of retail sale of sunglasses. The applicant was registered under the Delhi Value Added Tax Act, 2004 and the Central Sales Tax Act, 1956 and now the applicant has migrated to GST regime. The applicant has several retail outlets in Delhi and one such outlet is at Terminal-3 (International Departure), Indira Gandhi International Airport, New Delhi.
The applicant’s concerned retail outlet is in the Security Hold Area on crossing the Customs & Immigration. The issue is whether the location of the retail outlet of the applicant in the Security Hold Area of the International departure is outside India though geographically it is within the territory of India. The said area is after crossing the Customs Frontier of India and is claimed to be situated outside the territory of India.
Observations by the Court
The court has given our thought filled consideration to the issue raised before us and we find the issue in this appeal is limited as to whether the sales effected from the Security Hold Area of the IGI Airport, T-3, New Delhi amount to “export of goods” and are well within the definition of “export of goods” under the IGST Act, 2017.
We find that the location of the appellant’s shop is in the Security Hold Area (SHA) and this is undisputed fact on record. On a conjoint reading of the definitions, as extracted herein, it naturally follows that appellant’s shop in SHA cannot by any stretch of imagination be said to be located outside India. Instead, we find that the appellant’s shop is located within India, as defined under of the Customs Act, 1962. In the light of the aforesaid findings of ours, when the shop of the appellant is located in the SHA, the same is in ‘India’.
A shop in security hold area of an airport in India cannot be said to be outside India. The shop is considered to be in India.In-re-Rod-Retail-Private-Limited-GST-AAAR-Delhi