Inter-State sale classification upheld where contract-driven movement of machinery, not local installation, determined taxability.

Supply of machinery and equipment made to customer specifications, with movement of goods occasioned by the contract, was treated as an inter-State sale rather than a local sale under the Andhra Pradesh General Sales Tax Act. Installation and erection of the equipment in Andhra Pradesh did not change the character of the transaction. The objection based on locally purchased components was not entertained because it had not been raised before the lower authorities or the Tribunal. The transaction was therefore outside the State's taxing power as a local sale, and the revision was dismissed.

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Issues: Whether the turnover arising from execution of the works contract and supply of machinery and equipment was liable to tax as a local sale under the Andhra Pradesh General Sales Tax Act, or whether it constituted an inter-State sale beyond the State's taxing power.

Analysis: The transaction was found to involve supply of machinery and equipment according to the customer's specifications, with movement of goods occasioned by the contract. The fact that the equipment was installed and erected in Andhra Pradesh did not alter the character of the sale. The challenge based on locally purchased components was also not entertained, as it had not been raised before the lower authorities or the Tribunal.

Conclusion: The transaction was an inter-State sale and was not taxable as a local sale under the Andhra Pradesh General Sales Tax Act. The revision was dismissed.

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