Judgment

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 Cl. (2) of Art. 286, by which Parliament was given the power by law to formulate principles for determining when a sale or purchase of goods takes place in any of the ways mentioned in Cl. (1). Acting in pursuance of this power, the Parliament enacted S. 5 (1) of the Central Sales Tax Act, 1956, providing that a sale or purchase of goods shall be deemed to take place in the course of the export of the goods out of the territory of India only if the sale or purchase either occasions such export or is effected by a transfer of documents of title to the goods after the goods have crossed the customs frontiers of India.

2. The question which arises for our consideration in this appeal is whether a sale effected by the respondents - M/s. Swaika Oil Mills - i