MADRAS MARINE & CO. vs STATE OF MADRAS

The Supreme Court held that sales of goods stored in bonded warehouses for foreign-going vessels do not constitute sales within the State of Tamil Nadu under the Tamil Nadu General Sales Tax Act, 1959. The Court emphasized that the property in goods does not pass within the territory of Tamil Nadu, as the sales are deemed to occur in the course of export, thus exempting them from state sales tax. The Court reversed the High Court's decision, affirming the Tribunal's ruling that the sales were not subject to state taxation.