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21. Mr. Sibal submits that the conceptual term "stores" is different from goods like food supplied on board an airline for the consumption of passengers. Section 2(38) of the Customs Act defines "stores". "'Stores' means goods for use in a vessel or aircraft and includes fuel and spare parts and other articles of equipment whether or not for immediate fitting". In his submission, it is clear from this inclusive definition that the stores meant for use in a vessel or aircraft are essential equipment for the functioning of the aircraft or vessel itself and, consequently, cannot possibly have a destination in the context of the expression of export under Section 5(1) of the CST Act.

42. Relying on explanation to Section 2(ab) of the CST Act, Mr. Bharucha submits that the said sub-section defines a "customs area" to be the limits of customs station and the term "customs station" has to have the same meaning as in the Customs Act. He submits that as per the provision of Section 2(13) of the Customs Act, customs area means any customs port, customs airport or land customs station. According to him, customs airport has been defined in Section 2(10) to mean any airport appointed under Section 7(a) to be a customs airport. He pressed into service Notification No. 62/94-Cus dated November 21, 1994 issued under Section 7 and as amended from time to time which includes Sahar Airport to be a customs airport. According to him, under Section 8 of the Customs Act, the Commissioner has power to specify limits of customs area. The then Additional Collector of Customs issued a notification dated November 27, 1968 specifying the limits of Bombay Airport at Santacruz to inter alia include the whole aerodrome including the runways, the tarmac, the parking base, the hangers for parking and repairs, airline offices, buildings, petrol installations and structures bounded by and within the limits prescribed in the said circular. He further submits that the export goods first enter the customs area. All the customs formalities are completed in the said customs area. The permission of the customs officers is then obtained for export of goods. The goods are then loaded on to the aircraft. The aircraft then leaves the customs area. It is only when the aircraft leaves the customs area then only it can be said that it has crossed the customs frontiers of India.

47. Mr. Sibal submits that the next ingredient required to be proved by the petitioners was that the sale was effected by the transfer of documents of title, being the delivery order, after the goods had crossed the customs frontiers of India. The revenue in this respect has contended that the customs frontiers of India in terms of Section 2(ab) of the CST Act means crossing the limits of the area of a customs station. The term "customs station" in turn is defined in the Customs Act in Section 2(13) which means any customs port, customs airport or land custom station. The boundaries of a "customs airport" in the context of Bombay representing the limits of the Sahar International Airport is proved through a notification placed on record. Mr. Sibal submits that this entire submission of the Revenue proceeds on a misreading of Section 2(ab). Section 2(ab) of the Act of 1956 defines the crossing of customs frontiers of India to mean crossing the limits of the area of a customs station in which imported or exported goods are ordinarily kept before clearance. The expression "before clearance" itself implies that crossing customs frontiers of India is a limited area of a customs station which is crossed after clearance by the customs authorities. The reliance therefore is placed on the definition of a "customs station" in the Customs Act and further elaborating upon the outer limits of Sahar Airport has no bearing on the expression crossing the customs frontiers of India, on its own terms, therefore, this submission is erroneous. Mr. Sibal submits that in any event, if the said submission of the Revenue is correct, it would lead to absurd results both in the matter of exports and imports. The very reason why Section 2(ab) was incorporated in the Customs Act would be undone if such interpretation as contended by the Revenue is accepted. In his submission, the Revenue's submission is erroneous, which can be borne out from the following judgment of Andhra Pradesh High Court in Mineral and Metals Trading Corporation of India Ltd. v. State of Andhra Pradesh [1998] 110 STC 394 and the judgment of the West Bengal Taxation Bench in Brijlal Tulsian v. Commercial Tax Officer [1997] 107 STC 75.

91. In the light of the above, it is necessary to understand the concept of crossing the customs frontiers of India as defined under Section 2(ab), The customs area has been defined in Section 2(11) of the Customs Act as the area of customs station including the area where the export goods or import goods are ordinarily kept before clearance by the customs authorities. There is no definition of customs frontiers in the Customs Act. Section 2(ab) of the CST Act defines "crossing the customs frontiers of India" as crossing the limits of the area of a customs station in which imported goods or export goods are ordinarily kept before clearance by customs authorities. In the explanation to the said definition it is stated that the definition of expression "customs station" and "customs authorities" in the Customs Act shall apply to the CST Act. Therefore, within the meaning of Section 5(1) of the CST Act the expression "crossing the customs frontiers of India" means crossing the limits of area of customs station in which the goods for export are ordinarily kept before clearance by the customs authorities, Thus, unless the limits of the customs station are crossed, the goods do not cross the customs frontiers of India.