AIR 1953 SUPREME COURT 333 ::1966 MadLW 611

Supreme Court Of India

(From Travancore-Cochin: A.I.R. 1952 Tra-Co. 83. )

Hon'ble Judge(s): M. Patanjali Sastri, B. K. Mukherjea, S. R. Das, Vivian Bose, Ghulam Hasan , JJJ

(A) Constitution of India , Art.286(1)(b)— Sale in the course of import or export. Per Majority .- With respect to the scope of Art. 286 (1) (b) the following conclusions may be summed up: (1) Sales by export and purchases by import fall within the exemption under Art. 286 (1) (b) ; A. I. R 1952 S. C. 866. Foll. (2) Purchases in the State by the exporter for the purpose of export as well as sales in the State by the importer after the goods have crossed the customs frontier are not within the exemption and (3) Sales in the State by the exporter or importer by transfer of shipping documents while the goods are beyond find the customs frontier are within the exemption assuming that the State-power of taxation extends to such transactions.(Para 16) Per Das J.- A sale or purchase "in the course of" import or export within the meaning of Art 286 (1) (b) includes (1) a sale or purchase which itself occasions the import or export, (ii) a sale or purchase which takes place while the goods are on the high seas on their import or export journey, and (iii) the last purchase by the exporter with a flew to export and the first sale by the importer to a dealer after the arrival of the imported goods. If a sale or purchase takes place within a state, either under the general law or by reason of the....