M/S HOTEL ASHOKA(INDIANTOUR.DEV.COR.LTD) vs ASST.COMMR.OF COMMERCIAL TAXES

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 emphasized that the State has no jurisdiction to tax sales occurring outside its territory or in the course of import. The appeal was allowed, overturning the High Court's dismissal of the appellant's writ appeal, thereby ruling in favor of the appellant, M/s Hotel Ashoka.