STATE OF ORISSA ETC. vs THE M.M.T.C. OF INDIA ETC.

The Supreme Court upheld the High Court's decision that the sales by the respondent to Japanese buyers were not subject to sales tax under the Orissa Sales Tax Act, as they fell within the exemption provided by Article 286(1)(b) of the Constitution and Section 5 of the Central Sales Tax Act. The Court affirmed that there was no contravention of the declarations made under Rule 27(2) of the Orissa Sales Tax Rules, and thus the proviso to Section 5(2)(A)(a)(ii) of the Act was not applicable. The appeals by the State of Orissa were dismissed, confirming the Tribunal's jurisdiction in remanding the appeal.