Inter-State purchase characterization bars local purchase tax when goods move out of Uttar Pradesh pursuant to the sale.

Commission agents' purchases for ex-U.P. principals were treated as inter-State trade where the goods moved from Uttar Pradesh to another State pursuant to the purchase. On that footing, the turnover fell within section 3 of the Central Sales Tax Act, 1956 and could not be taxed as local purchase tax under section 3-D of the U.P. Sales Tax Act, 1948. The statutory presumption under section 12-A was inapplicable because the dealers were not claiming exemption under section 3-D. Mere deposit of tax did not change the true legal character of the transactions.

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Issues: Whether purchases made by commission agents for ex-U.P. principals were purchases in the course of inter-State trade and, if so, whether the presumption under section 12-A of the U.P. Sales Tax Act, 1948 could be invoked to tax the transactions under section 3-D of that Act.

Analysis: The transactions were found as a matter of fact to be purchases in the course of inter-State trade. Where the goods moved from Uttar Pradesh to another State pursuant to the purchase, the turnover fell within the ambit of section 3 of the Central Sales Tax Act, 1956 and could not be taxed as local purchase tax under section 3-D of the U.P. Sales Tax Act, 1948. Since the dealers were not claiming exemption under section 3-D, the statutory presumption under section 12-A could not be applied against them. Mere deposit of tax did not alter the true legal character of the transactions.

Conclusion: The presumption under section 12-A was inapplicable, the purchases were not taxable under section 3-D, and the revisions failed.

Ratio Decidendi: A transaction found to be an inter-State purchase covered by section 3 of the Central Sales Tax Act, 1956 cannot be brought to local purchase tax under section 3-D of the U.P. Sales Tax Act, 1948 by invoking section 12-A when the dealer is not claiming exemption under that provision.

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