J. V. GOKAL & Co. (PRIVATE) LTD. vs THE ASSISTANT COLLECTOR, OF SALES-TAX(INSPECTION) AND OTHE

The Supreme Court held that under Article 286(1)(b) of the Constitution of India, the course of import begins when goods cross the customs barrier of the foreign country and ends when they cross the customs barrier of the importing country. The Court ruled that an importer can transfer property in goods on the high seas by delivering shipping documents against payment, which constitutes a sale in the course of import. The delivery of a bill of lading while goods are afloat is equivalent to delivery of the goods themselves, thus exempting the transaction from sales tax under Article 286(1)(b). The Court affirmed that the property in the goods passed to the Government of India upon delivery of the shipping documents against payment.