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Issues: Whether the sales by the manufacturer to the trading company were inter-State sales under Section 3 of the Central Sales Tax Act, 1956.
Analysis: The general agreement did not itself determine the actual quantities, sale price, booking station or destination station. The nature of the transactions had to be gathered from the actual orders and the manner in which the goods were booked and despatched. The goods were booked in Tamil Nadu for destinations outside the State as required by the out-of-State buyers, and the movement of the goods from one State to another was occasioned by the terms of the contracts and the subsequent instructions. The transfer of railway receipts and invoices was also consistent with the conclusion that the sales were not mere local deliveries at the booking station.
Conclusion: The sales were inter-State sales within Section 3 of the Central Sales Tax Act, 1956 and the assessee was not entitled to succeed.
Ratio Decidendi: Where the movement of goods from one State to another is caused by the contract of sale and the actual course of dealing shows despatch to out-of-State destinations, the sale is an inter-State sale under Section 3 of the Central Sales Tax Act, 1956, notwithstanding a general agreement describing the supply as F.O.R. booking station.
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