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Issues: Whether the fifty-five disputed transactions were inter-State sales under section 3(a) of the Central Sales Tax Act, 1956, or merely consignment transactions effected through the commission agent.
Analysis: The concurrent findings showed that the commission agent first ascertained availability, price, and demand from the assessee, then entered into contracts with Bombay buyers, and thereafter instructed the assessee to despatch the goods to the named buyers by rail with railway receipts prepared in their names. The goods were not sent to the agent for stocking or independent resale, and there was a clear telephonic and transactional link between the sale contracts and the movement of goods from Gujarat to Maharashtra. On these facts, the movement of goods was caused by and inextricably linked with the contracts of sale, satisfying the requirement that the sale must occasion the movement of goods from one State to another.
Conclusion: The disputed transactions were inter-State sales under section 3(a) of the Central Sales Tax Act, 1956 and not mere consignment sales; the answer was against the assessee.
Ratio Decidendi: Where goods move from one State to another pursuant to a prior contract of sale and the movement is directly occasioned by that contract, the transaction is an inter-State sale under section 3(a) of the Central Sales Tax Act, 1956.
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