STATE OF BIHAR & ANR. vs TATA ENGINEERING & LOCOMOTIVE CO. LTD.

The Supreme Court held that sales made by the assessee to its dealers for resale outside Bihar during the specified period were exempt from sales tax under the Bihar Sales Tax Act, as these sales occurred in the course of inter-State trade or commerce, as per Article 286(2) of the Constitution of India. The Court established that if the contract necessitates the removal of goods from the state of purchase to another state, such sales qualify as inter-State trade. The appeal was allowed, affirming the High Court's decision.