Judgment

TULZAPURKAR, J. :- The common question raised in these appeals is whether the sales effected by the respondent-assessee in the three concerned years of goods imported and supplied to customers on the strength of Actual Users Import. Licences of the customers were exempt from sales tax under the Kerala General Sales Tax Act, 1950, on the ground that these were sales "in the course of import of the goods into the territory of India"?

2. The respondent-assessee deals in chemicals, dyes, etc. The concerned assessment years are 1961-62, 1962-63 and 1963-64. The respondent-assessee was assessed to sales tax under the General Sales Tax Act, 1950 on the turnover of sales effected by them in those years of goods imported on the strength of the customers Actual Users Import Licences and supplied to them. Such turnover subjected to tax was to the tune of Rs. 3,15,526.10(?) in the year 1961-62. Rs. 13,40,949.98 in the year 1962-63 and Rs. 4,03,427.72 in the year 1963-64. The respondent-assessee contended that these sales were in the course of import of goods into India and hence not taxable by virtue of Art. 286(1)(b) of the Constitution. The contention was negatived by the assessing au