TMI Blog1977 (8) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... cate, with him), for the respondent. D.N. Mukherjee and G.S. Chatterjee, Advocates, for the appellant. -------------------------------------------------- The judgment of the Court was delivered by CHANDRACHUD, J .-Article 286(1)(b) of the Constitution provides that no law of a State shall impose, or authorise the imposition of a tax on the sale or purchase of goods, where such sale or purchase takes place in the course of the import of the goods into, or export of the goods out of, the territory of India. By the Sixth Amendment to the Constitution which came into force on September 11, 1956, an amendment was made to clause (2) of article 286, by which Parliament was given the power by law to formulate principles for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tation of "Clean on board" Mate's receipt along with the relative G.R.I. forms in triplicate; (b) The insurance charges were to be paid by the purchasers; (c) The purchasers were to send to the respondents their shipping broker for arranging booking of the shipping space for the goods to be put on board the ship by the respondents; (d) The respondents were to mark the goods with the shipment marks specified by the purchasers in the letter; (e) Due to import restrictions in Indonesia, the respondents were to ship not more than 500 imperial gallons of linseed oil; and finally, (f) The "export" was "to be made" under the export licence of the respondents. Mr. Shankar Ghosh, who appears on behalf of the respondents, has raised a v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sation and their foreign buyer. Respondents knew nothing of those terms and their contract with the Netherlands Organisation did not stand or fall by the terms of that sale. (4) The immediate cause of the movement of goods and the export was the contract between the Netherlands Organisation and their foreign buyer and not the sale between the respondents and the Netherlands Organisation. The export was occasioned by the contract of sale between the Netherlands Organisation and their own buyer and not by the contract of sale between the respondents and the Netherlands Organisation. (5) The bill of lading was indisputably made out in the name of the Netherlands Organisation which obtained a complete and indefeasible title to the goods pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n board the ship. The fact that the place of delivery is a foreign-bound ship cannot, by itself, make a sale one in the course of export. (10) The very agreement, which is the basis of the respondents' claim for exemption from sales tax, begins with the assertion: "We herewith confirm having bought from you" the goods mentioned in the letter. The sale transaction was thus concluded between the respondents and the Netherlands Organisation in India. Lastly, (11) The fact that the respondents were to lend to the Netherlands Organisation the use of their export licence or that the respondents paid the customs duty and the Port Commissioner's charges, does not mean that the goods were exported by or at the instance of the respondents or that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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