Inter-State sale under the Central Sales Tax Act applies when earmarked goods move under a pre-existing contract for delivery.

Where identified motor cars were earmarked under a pre-existing contract and moved from Madras to Nellore for delivery to named purchasers, the movement was held to be occasioned by the sale itself and part of one integrated transaction. Section 3(a) of the Central Sales Tax Act applied because the sale caused inter-State movement, and section 4(2)(b) confirmed that buyer assent was not essential to determine the place of sale on appropriation of goods. Delivery through the seller's branch at Nellore did not alter the character of the transactions, which were held to be inter-State sales taxable under the Act.

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Issues: Whether the turnover arising from motor car deliveries arranged through the assessee's branch at Nellore constituted inter-State sales taxable under section 3(a) of the Central Sales Tax Act, 1956, or local sales outside the Central Sales Tax Act.

Analysis: The transactions were held to be governed by the prior allotment and commitment structure, under which the cars were earmarked in Madras and then moved to Nellore for delivery to identified purchasers. The movement was not independent of the sale but was occasioned by the contract of sale and formed part of the same integrated transaction. Section 3(a) fastens liability where the sale causes movement from one State to another, and section 4(2)(b) shows that assent of the buyer is not essential to fix the place of sale in the case of appropriation of goods. The presence of the branch at Nellore did not break the inter-State character of the movement.

Conclusion: The sales were inter-State sales under section 3(a) of the Central Sales Tax Act, 1956, and were rightly taxed.

Final Conclusion: The revision petitions failed because the disputed transactions were held to fall within the statutory concept of inter-State trade and were not local sales immune from Central sales tax.

Ratio Decidendi: Where identified goods are earmarked pursuant to a pre-existing contract and their movement to another State is undertaken to fulfil that contract, the sale occasions the movement and is taxable as an inter-State sale notwithstanding delivery through the seller's branch or intermediary.

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