STATE OF BIHAR & ANR. versus TATA ENGINEERLNG & LOCOMOTIVE CO. LTD.

STATE OF BIHAR & ANR. versus TATA ENGINEERLNG & LOCOMOTIVE CO. LTD.

Where under the terms of the contract of sale, the buyer is required as a necessary incident to remove goods from the State in which they are purchased to another State, and when goods are so removed, the sale must be considered as a sale in the course of inter-State trade or commerce under Article 286(2) of the...

Source-derived case information.

Parties
Appellant: State of Bihar; Respondent: Tata Engineering & Locomotive Co. Ltd.
Jurisdiction
India
Judgment Date
27 November 1970
Procedural Posture
Civil Appeal / Appeal by Special Leave From Patna High Court Decision in Misc. Judicial Case No. 284 of 1962
Outcome
Appeal dismissed
Legal Topics
Inter State Trade and Commerce, Sales Tax, Article 286(2)
Constitutional Law Tax Law Inter State Trade and Commerce Sales Tax Article 286(2)

Source-derived case record

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Parties

State of Bihar

Appellant

Tata Engineering & Locomotive Co. Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From Patna High Court Decision in Misc. Judicial Case No. 284 of 1962

Legal Issues

  1. 1 Whether sales made in Bihar to dealers for resale outside Bihar are exempt from sales tax under Article 286(2) as sales in the course of inter-State trade or commerce

Ratio Decidendi

Where under the terms of the contract of sale, the buyer is required as a necessary incident to remove goods from the State in which they are purchased to another State, and when goods are so removed, the sale must be considered as a sale in the course of inter-State trade or commerce under Article 286(2) of the Constitution as it stood at the relevant time.

Court Disposition

Appeal dismissed

Orders

  • Appeal fails; same is dismissed with costs.