COMMR.OF SALES TAX vs M/S TATA IRON & STEEL CO.LTD.

The Supreme Court addressed the applicability of Section 5(2) of the Central Sales Tax Act, 1956, which states that a sale is deemed to occur in the course of import if it occasions such import. The Court found that the High Court failed to properly analyze the interconnection between the contracts between Tata Iron & Steel Co. Ltd. (TISCO) and the Indian buyers, and between TISCO and Tata Inc. (USA). The Court remanded the case for a fresh examination of the documents to determine if the contracts were inextricably linked, thus potentially qualifying for exemption under the first limb of Section 5(2).