Central sales tax requires inter-State movement from the taxing State; goods never entering Rajasthan defeated taxability.

Central sales tax liability in a State requires an inter-State movement of goods attributable to a sale from that State. Where the goods never entered Rajasthan, they could not be treated as moving from Rajasthan to another State, so no taxable inter-State sale arose in Rajasthan under the Central Sales Tax Act, 1956. The assessee's earlier description of the transaction as a subsequent sale under section 6(2) did not change the legal character of the transaction on the admitted facts, and the turnover was held not taxable in Rajasthan.

---

---

Issues: Whether the turnover was liable to tax in Rajasthan under the Central Sales Tax Act, 1956 when the goods never entered Rajasthan and the assessee claimed the transaction as a subsequent sale under section 6(2) of that Act.

Analysis: The decisive fact was that the goods did not enter the territory of Rajasthan at any stage. For levy of Central sales tax in Rajasthan, the movement of goods must be occasioned by a sale from Rajasthan to another State. Where the goods never came into Rajasthan, they could not be said to have moved from Rajasthan to Punjab, and no inter-State sale taxable in Rajasthan arose. The earlier representation of the transaction as one falling under section 6(2) did not alter the true character of the transaction on the admitted facts.

Conclusion: The turnover in question was not taxable in Rajasthan under the Central Sales Tax Act, 1956 and the assessee succeeded.

Ratio Decidendi: Liability to Central sales tax in a State requires a taxable inter-State movement of goods attributable to the sale from that State; where the goods never enter the State, no taxable inter-State sale in that State is established.

---