STATE OF TRAVANCORE-COCHIN ANDOTHERS vs THE BOMBAY CO. LTD.STATE OF TRAVANCORE-COCHIN ANDANOTHERMI

The Supreme Court interpreted Article 286(1)(b) of the Constitution of India, holding that sales and purchases that occasion the export or import of goods are exempt from sales tax. The Court rejected the narrow interpretation that a sale occurs only when property in goods is transferred during their actual movement, asserting that the sale and resultant export form a single transaction. It concluded that even if property passes within the State before the goods leave, such sales are still considered to take place in the course of export and thus exempt under Article 286(1)(b).