Inter-State sale turns on movement of goods pursuant to contract, not on when property passes, under sales tax law.

A person cannot be treated as a purchasing agent for ex-U.P. buyers when he supplies his own goods; agency purchase applies only where goods are bought from third parties on behalf of principals, so the claim that such supplies were non-sales failed. Sales to ex-U.P. dealers were inter-State sales because the contract of sale directly occasioned movement of goods from Uttar Pradesh to another State, and the passing of property was immaterial. On that basis, the turnover was held liable to Central sales tax, and the reference was answered against the assessee.

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Issues: (i) Whether the seller could act as purchasing agent for ex-U.P. buyers and whether supplies made from its own goods could be treated as non-sales under the U.P. Sales Tax Act; (ii) Whether the supplies made to ex-U.P. dealers amounted to inter-State sales taxable under the Central Sales Tax Act.

Issue (i): Whether the seller could act as purchasing agent for ex-U.P. buyers and whether supplies made from its own goods could be treated as non-sales under the U.P. Sales Tax Act.

Analysis: A purchasing agent acts only when he buys goods on behalf of his principals from third parties and supplies those goods to them. Where a person supplies his own goods, the transaction is one of sale and not of agency purchase. It is not legally possible for a person to buy or sell his own goods to himself, and the claim that the goods were first acquired from a sister concern and thereafter supplied as a purchasing agent was untenable.

Conclusion: The issue was answered in the negative and against the assessee.

Issue (ii): Whether the supplies made to ex-U.P. dealers amounted to inter-State sales taxable under the Central Sales Tax Act.

Analysis: A sale is an inter-State sale when the contract of sale occasions the movement of goods from one State to another. The passing of property in the goods is immaterial if the movement across State boundaries is directly caused by the sale. The statutory language of sections governing inter-State trade and export is identical in substance on this point, and the movement of the goods from Uttar Pradesh to other States in execution of the orders placed by outside dealers brought the transactions within the statutory definition.

Conclusion: The issue was answered in the affirmative and against the assessee.

Final Conclusion: The reference was decided entirely against the assessee, and the turnover in question was held liable to Central sales tax.

Ratio Decidendi: A sale is inter-State when the contract of sale directly occasions the movement of goods from one State to another, and the place where property passes does not determine the character of the sale.

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