MEMBER BOARD OF REVENUE, WEST BENGAL vs M/S. SWAIKA OIL MILLS

The Supreme Court ruled that Article 286(1)(b) of the Constitution prohibits state laws from imposing taxes on sales or purchases occurring during the import or export of goods. The Court clarified that Section 5(1) of the Central Sales Tax Act, 1956, defines when a sale is considered to occur in the course of export. The Court held that the sale by M/s Swaika Oil Mills was not in the course of export, thereby overturning the Calcutta High Court's decision that had set aside the sales tax assessment.