Inter-State sale requires the very sale to occasion movement of goods; subsequent resale does not attract Central Sales Tax.

A sale completed within Jharkhand was treated as an intra-State transaction because the movement of coal to Uttar Pradesh was caused by a later sale by the purchaser, not by the original sale. Under Section 3 of the Central Sales Tax Act, an inter-State sale exists only where that very sale occasions the movement of goods from one State to another. As that element was absent in the first transaction, Central Sales Tax was not leviable on the original sale, and Jharkhand Value Added Tax applied instead. The invoice levy of Central Sales Tax was therefore incorrect.

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Issues: Whether the tax on the first sale of coal by the Jharkhand seller was exigible as Central Sales Tax or as Jharkhand Value Added Tax, when the movement of goods outside the State occurred because of a subsequent sale by the purchaser.

Analysis: The sale between the seller and the petitioner was completed within Jharkhand and was therefore an intra-State sale. The movement of coal from Jharkhand to Uttar Pradesh did not arise from that first sale, but from a later sale by the petitioner to buyers outside the State. Under Section 3 of the Central Sales Tax Act, 1956, an inter-State sale requires that the particular sale itself occasion the movement of goods from one State to another. Since that element was absent in the first transaction, Central Sales Tax could not be levied on the petitioner for that sale. The transaction attracted Jharkhand Value Added Tax, and the levy of Central Sales Tax in the invoice was incorrect.

Conclusion: The levy of Central Sales Tax was held impermissible and the transaction was held liable to Jharkhand Value Added Tax, in favour of the petitioner.

Ratio Decidendi: A sale is inter-State only if that very sale occasions the movement of goods from one State to another; where the interstate movement results from a subsequent sale, the original intra-State sale cannot be subjected to Central Sales Tax.

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