B. K. WADEYAR vs M/S. DAULATRAM RAMESHWARLAL

The Supreme Court ruled that under Article 286(1)(b) of the Constitution, the property in goods sold under F.O.B. contracts remains with the seller until the goods are loaded on board the ship, thus exempting such sales from Sales Tax. The Court upheld the High Court's decision regarding the purchase tax liability under Section 10(b) of the Bombay Sales Tax Act, interpreting 'a person' as 'a registered dealer'. The judgment clarified that the duty to obtain an export license typically falls on the buyer, although it may vary based on circumstances.