KRISHNA TRADERS Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) The submission for the assessee was that a sale within the State when it becomes a part of the sale in the course of export by reason of Section 5(3) of the Central Sales Tax Act, 1956 is nevertheless a sale within the State and, therefore, goods purchased from unregistered dealers which becomes the subject matter of such sales cannot be subjected to tax under Section 7-A of the Tamil Nadu General Sales Tax Act.

(2.) Mr. Natarajan, learned senior counsel invited our attention to the decision by the Constitution Bench in the case of State of Travancore -Cochin & Ors. Vs. Bombay Co. Ltd.,(AIR 1952 S.C. 366). It was held at paragraph 10 of the judgment that,

(3.) Article 286(1) prohibits the law of any State from imposing or authorising the imposition of, a tax on the sale or purchase of goods where such sale or purchase takes place, outside the State; or in the course of the import of the goods into, or export of the goods out of, the territory of India.