THE STATE OF KERALA AND OTHERS vs THE COCHIN COAL COMPANY LTD.

The Supreme Court ruled that the sales of bunker coal by the respondent to steamers in Travancore-Cochin were exempt from sales tax under the Government Notification dated February 5, 1954, as they fell within the Explanation to Article 286(1)(a) of the Constitution. The Court clarified that for Article 286(1)(b) to apply, goods must be intended for export beyond India, which was not the case here. The levy of sales tax was validated by the Sales Tax Validation Act, 1956, but the sales were not in the course of export and thus not subject to the ban under Article 286(1)(b).