THE DEPUTY COMMISSIONER OF AGRICULTURAL INCOME TAX AND SALE vs M/S. KOTAK & CO., BOMBAY, ETC. ETC.

The Supreme Court held that the sales made by the respondent to textile mills were inter-State sales under Section 5(2) of the Central Sales Tax Act, 1956, as they occasioned the import of goods into India. The Court affirmed the High Court's decision that the sales were exempt from tax, referencing Article 286 of the Constitution. The ruling followed the precedent set in K. G. Khosla & Co. v. Deputy Commissioner of Commercial Taxes, establishing that sales can be deemed to occur in the course of import if they facilitate the import process.