Inter-State versus intra-State sale characterisation must first be decided by the competent fact-finding tribunal when facts are disputed.

Where the characterisation of disputed transactions as inter-State or intra-State sales depends on contested facts, including the place and situs of sale, the matter should be determined in the first instance by the competent fact-finding tribunal. The Supreme Court did not finally decide the merits and instead directed the disputes to the appropriate Sales Tax Appellate Tribunals for adjudication, with notice to the concerned States and limited interim protection continuing during that process.

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Issues: Whether the disputed transactions were inter-State sales or intra-State sales requiring factual determination by the appropriate Sales Tax Tribunal and, consequently, whether the matters should be remanded or transferred for such adjudication.

Analysis: The disputes turned on mixed questions of fact and law, including the character of the transfers, the place where the sales were effected, and the situs of the transactions. The Court treated these matters as unsuitable for final determination at the threshold and followed its earlier approach in similar cases by directing adjudication by the competent fact-finding tribunal. The matters were therefore sent to the Gujarat Sales Tax Appellate Tribunal and the Andhra Pradesh Sales Tax Tribunal, as the case may be, with notice to the concerned States and with interim protection continuing for a limited period.

Conclusion: The transactions were not finally decided on merits by the Court and were directed to be examined first by the appropriate tribunals.

Final Conclusion: The dispute was left for initial factual adjudication by the statutory appellate tribunals, and the proceedings before the Court were concluded by remand or transfer for that purpose.

Ratio Decidendi: Where the characterization of a transaction as inter-State or intra-State depends on disputed facts and the situs of sale, the matter should ordinarily be determined in the first instance by the competent fact-finding tribunal rather than finally by the Court at that stage.

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