Report No. 30

48. Second Travancore case.- This decision of the Supreme Court which, as we have seen above, holds that it is only the sales that occasion the export, and only the purchases that occasion the import that are regarded as taking place in the course of export or import, as the case may be, for the purpose of Article 286(1)(b), was reaffirmed in the II Travancore case which further considered if any other transactions could or could not be regarded as having taken place in the course of import or export, either by occasioning import or export, or otherwise.

49. The Second Travancore case is State of Travancore-Cochin v. Shanmugha Vilas Cashew Nut Factory, [AIR 1953 SC 333: (1954) SCR 53]. The facts of this case are that the Respondents were dealers in cashewnuts in the State of Travancore. Their business consisted in making purchases of cashewnuts and after converting them into edible kernels and oil they used to export the edible kernels and the oil to U.S.A.