INDIAN COPPER CORPORATION LTD. vs THE STATE OF BIHAR AND OTHERS.

The Supreme Court held that under Article 286(1)(a) of the Constitution and Section 33 of the Bihar Sales Tax Act, 1947, sales where delivery in the State of first destination was for consumption therein are considered 'outside sales' and thus exempt from Bihar sales tax. Conversely, sales where delivery was not for consumption in the State of first destination are not exempt and can be taxed by Bihar. The court clarified that the passing of property within the State does not automatically classify a sale as 'outside' unless it meets the criteria set forth in the Explanation to Article 286(1)(a).