TOBACCO MANUFACTURERS (INDIA) LTD. vs THE COMMISSIONER OF SALES-TAX, BIHAR, PATNA.

The Supreme Court addressed the applicability of Article 286(1)(a) of the Constitution regarding sales tax on goods delivered outside the State of Bihar. The Court held that the Board of Revenue's interpretation, which exempted sales where goods were delivered outside the State for consumption in other States, was incorrect. The Court clarified that the sales tax officer must determine tax liability based on the Supreme Court's ruling in the United Motors Case, which prohibits tax on goods dispatched outside the State after January 26, 1950. The appeal was allowed, and the matter was remanded for proper assessment of tax liability.