87. Certain sales and purchases not to be liable to tax. - Nothing in this Act or the rules made thereunder shall be deemed to impose or authorise the imposition of a tax on any sale or purchase of any goods, where such sale or purchase takes place-
(i)in the course of inter-State trade or commerce, or(ii)outside the State, or(iii)in the course of the import of the goods into the territory of India or the export of the goods out of such territory.and the provisions of this Act and the said rules shall be read and construed accordingly.Explanation. - For the purpose of this section whether a sale or purchase takes place-(a)in the course of inter-State trade or commerce, or(b)outside the State, or(c)in the course of the import of the goods into territory of India or export of the goods out of such territory.shall be determined in accordance with the principles specified in sections 3, 4 and 5 of the Central Sales Tax Act, 1956 (LXXIV of 1955).
