Inter-State sale by movement of goods upheld where invoice and purchase order supported Delhi-to-Punjab transfer; detention found unjustified.

Goods moving from Delhi to Punjab pursuant to a purchase order and invoice constituted an inter-State sale under the Central Sales Tax Act, 1956, because the movement of goods was linked to the contract of sale and supported by documentary evidence. Payment not yet received and sale on f.o.r. basis did not negate the sale character, as consideration may be deferred or otherwise valuable under section 2(g). Mere suspicion about an intermediary was insufficient to override the documents. The Punjab and Haryana HC held detention under the Punjab VAT Act unjustified, ordered release of the goods, and imposed compensatory costs and demurrage-related directions on the officer.

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Issues: Whether the movement of goods from Delhi to Punjab constituted an inter-State sale so as to render detention under the Punjab Value Added Tax Act, 2005 unjustified.

Analysis: The transaction was supported by an order and invoice showing movement of goods from the consignor in Delhi to the consignee in Punjab. Under the Central Sales Tax Act, 1956, a sale in the course of inter-State trade is determined by the movement of goods from one State to another and the connection between the movement and the contract of sale. The fact that the goods were sent on f.o.r. basis and that the sale price had not yet been received did not negate the sale, because consideration may be cash, deferred payment, or any other valuable consideration under section 2(g) of the Central Sales Tax Act, 1956. Mere suspicion that an intermediary facilitated the order was insufficient to displace the documentary evidence or to infer that the transaction was not an inter-State sale.

Conclusion: The detention of the goods and vehicle was unjustified, and the transaction was held to be an inter-State sale in favour of the petitioner.

Final Conclusion: The writ petitions succeeded, the goods were ordered to be released, and compensatory costs and demurrage-related directions were imposed on the concerned officer.

Ratio Decidendi: A transaction remains an inter-State sale when goods move from one State to another pursuant to a sale contract supported by invoice and purchase order, and the absence of immediate payment or involvement of a facilitator does not by itself defeat the sale character of the movement.

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