Actual delivery outside the State determines tax treatment; outside-State sales were not taxable as intra-State transactions.

Sales transactions in which goods were sent under railway receipts to destinations outside the State and actually delivered there for consumption were held to fall outside the State's taxing power as intra-State sales under the Andhra Pradesh General Sales Tax Act. The controlling criterion was the place of actual delivery, not the earlier contrary view that had denied inter-State character to such transactions. In light of the Supreme Court's ruling on the same legal question, such outside-State deliveries could not be taxed as intra-State transactions, and the assessee was entitled to relief.

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Issues: Whether sales transactions in which the goods were delivered outside the State could be brought to tax as intra-State transactions under the Andhra Pradesh General Sales Tax Act.

Analysis: The controlling criterion was the place of actual delivery. The Court noted that where goods were sent under railway receipts to destinations outside the State and were actually delivered there for consumption, the transactions did not fall within the State's taxing power as intra-State sales. The earlier view denying inter-State character to such transactions could not stand in light of the Supreme Court's ruling on the same legal question.

Conclusion: The transactions were not taxable as intra-State sales under the Andhra Pradesh General Sales Tax Act and the assessee was entitled to relief.

Ratio Decidendi: For sales of goods sent outside the State, actual delivery outside the State is the criterion for determining that the transactions fall outside the State's taxing power as intra-State sales.

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