Central sales tax liability under section 3(b) requires transfer of title documents during movement; mere commission agency is insufficient.

Central sales tax under section 3(b) applies only where the sale is effected by transfer of documents of title to goods during movement from one State to another. On the facts found, the railway receipts were endorsed by the District Magistrate, not by the assessee, and the assessee received only commission for services rendered. As it neither obtained ownership nor control over the goods in transit, the transfer required by section 3(b) was not established against it. The taxable sale could not therefore be fastened in the assessee's hands, and the Tribunal's view treating it as liable to Central sales tax was rejected.

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Issues: Whether the assessee was liable to Central sales tax under section 3(b) of the Central Sales Tax Act on the footing that the inter-State sales were effected by transfer of documents of title during movement, or whether it acted only as a commission agent and guarantor, so that the taxable sale was not in its hands.

Analysis: Liability under section 3(b) arises only where the sale is effected by transfer of documents of title to the goods during their movement from one State to another. On the facts found, the railway receipts were endorsed by the District Magistrate, Aligarh, and not by the assessee. The assessee received only commission for the services rendered and did not obtain ownership or control over the goods during transit. The factual pattern was treated as consistent with the assessee acting as a commission agent, and the transfer contemplated by section 3(b) was not established against it.

Conclusion: The assessee was not liable to tax under section 3(b) of the Central Sales Tax Act, and the finding of taxable sale in its hands could not stand.

Final Conclusion: The revisions were allowed and the Tribunal's order was quashed, leaving no Central sales tax liability fastened on the assessee on the proved facts.

Ratio Decidendi: A sale is taxable under section 3(b) of the Central Sales Tax Act only when the transfer of documents of title during movement is effected by or attributable to the assessee; where the assessee acts merely as a commission agent and the documents are endorsed by another party, section 3(b) is not attracted.

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