M/S Hotel ... vs Asst.Commr.Of Commercial Taxes & Anr

The Supreme Court held that under Article 286 of the Constitution of India and Section 5 of the Central Sales Tax Act, 1956, no sales tax can be levied on goods sold at duty-free shops before they cross the customs frontiers of India. The Court found that the appellant's sales occurred in the course of import, thus exempting them from state taxation. The appeal was allowed, overturning the High Court's dismissal of the appellant's challenge to the assessment order.