Report No. 61

3.50. Decisions after Khosla's case-import sales.-

We shall now refer to a few decisions subsequent to Khosla's case. In the State of Bihar v. Tata Engineering & Locomotive (P.) Ltd., (1971) 27 STC 127 (149) (SC): AIR 1971 SC 477., after the Supreme Court stated that the decided cases established that sales will be considered as sales in the course of export or import or sales in the course of inter-State trade and commerce under the following circumstances:

(1) When goods which are in the export or import stream are sold,

(2) When the contracts of sale or the law under which goods are sold require those goods to be exported or imported to a foreign country or from a foreign country as the case may be, or the goods are required to be transported to a State other than the State in which the delivery of goods takes place, and

(3) Where, as a necessary incident of the contract of sale, goods sold are required to be exported or imported or transported out of the State in which the delivery of goods take place.