Inter-State sales under contract: goods moved outside Uttar Pradesh were taxable as central sales, not intra-State turnover.

Sales dispatched outside Uttar Pradesh under an express contractual term allowing buyers to give despatch instructions were treated as inter-State sales under section 3(a) of the Central Sales Tax Act. The contractual term was part of the sale itself, so the movement of goods to another State was occasioned by the contract and not merely by subsequent performance. The place where property passed was immaterial for section 3(a), and the argument that there were two separate sales lacked factual basis. The disputed turnovers were therefore not taxable as intra-State sales under the U.P. Sales Tax Act.

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Issues: Whether the disputed sales were inter-State sales under section 3(a) of the Central Sales Tax Act or intra-State sales liable to tax under the U.P. Sales Tax Act.

Analysis: The goods were despatched outside Uttar Pradesh in accordance with an express contractual term enabling the buyers to give despatching instructions. That term was an integral part of the contract and not merely a matter of performance. The movement of the goods to another State was therefore occasioned by the contract of sale. The place where property passed was immaterial for the application of section 3(a), and the contention that there were two separate sales had no factual basis.

Conclusion: The disputed turnovers constituted inter-State sales and were not taxable as intra-State sales under the U.P. Sales Tax Act.

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