Inter-State sales taxability depends on the origin State of movement, not the destination State's exclusion from the Act.

Inter-State sales effected in Punjab and causing movement of goods to Jammu and Kashmir were taxable under the Central Sales Tax Act because liability attached to the sale from the State where the movement commenced, not to the destination State. The exclusion of Jammu and Kashmir from the Act's territorial extent did not take such transactions outside the charging provisions. Constitutional objections based on discrimination and export failed because Jammu and Kashmir remained part of India for constitutional purposes, no impermissible discrimination was shown, and the transactions were not sales in the course of export.

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Issues: Whether sales effected in Punjab which occasioned the movement of goods to Jammu and Kashmir before the amendment excluding that State from section 1(2) of the Central Sales Tax Act were liable to tax under the Act, and whether such levy was invalid on the grounds that Jammu and Kashmir was outside the Act, discrimination under the Constitution, or export.

Analysis: The statutory scheme showed that the tax under the Central Sales Tax Act attached to sales made in the course of inter-State trade from the State where the movement of goods commenced. The place where the movement terminated did not control the taxability of the transaction, and the exclusion of Jammu and Kashmir from the territorial extent of the Act did not mean that inter-State sales from other States to that territory were outside the charging provisions. The constitutional objections were rejected because Jammu and Kashmir was part of India for constitutional purposes, the levy was not shown to create impermissible discrimination, and the transaction was not a sale in the course of export out of India. The construction adopted was consistent with the language and policy of the taxing statute.

Conclusion: The sales were rightly subjected to tax under the Central Sales Tax Act, and the challenge to the levy failed.

Ratio Decidendi: For the Central Sales Tax Act, taxability depends on the inter-State sale and the State from which the movement of goods commences, and not on whether the destination State is within the Act's territorial extent; constitutional objections will not defeat the levy where the statute otherwise clearly applies.

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