Inter-State sale under CST fails where dies and tools are retained in-State and no movement outside the State occurs.

Turnover attributable to dies and tools manufactured and retained within the assessee's premises was held outside the scope of inter-State sale treatment under the Central Sales Tax Act, 1956, because there was no movement of those goods outside the State. The court treated the absence of inter-State movement as decisive for section 3 applicability and held that the related turnover was not exigible to CST. The revision was dismissed in favour of the assessee.

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Issues: Whether the turnover relating to the cost of making dies and tools used in the manufacture of component parts for customers in other States was liable to tax under section 3 of the Central Sales Tax Act, 1956.

Analysis: The turnover in question related to dies and tools manufactured and retained within the assessee's premises. As there was no movement of those goods outside the State, the transaction could not be treated as a sale falling within the scope of section 3 of the Central Sales Tax Act, 1956.

Conclusion: The turnover was not exigible to tax under the Central Sales Tax Act, 1956 and the revision was dismissed in favour of the assessee.

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