Inter-State sale principles control cotton purchases when the contract itself causes movement across States, even if delivery occurs later.

A contract of sale occasions an inter-State transaction where the goods move from one State to another in pursuance of specific purchase orders, and that character is not altered by the fact that delivery or transfer of title occurs in the destination State. On the stated facts, the cotton was moved from Maharashtra to Tamil Nadu under the buyer's orders, supported by the contract, delivery orders, sale bills and transport documents, so the purchases were treated as inter-State purchases under the Central Sales Tax Act rather than local sales under the Tamil Nadu General Sales Tax Act. The Tribunal's finding was therefore left undisturbed, and the writ petition failed.

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Issues: Whether the disputed cotton purchases were inter-State purchases falling under the Central Sales Tax Act, 1956 or local purchases liable to tax under the Tamil Nadu General Sales Tax Act, 1959.

Analysis: The transaction records, including the contract, delivery orders, sale bills and transport documents, showed that the goods were moved from Maharashtra to Tamil Nadu in pursuance of specific purchase orders placed by the buyer. The movement of goods was therefore occasioned by the contract itself. The fact that delivery and passing of property occurred in Tamil Nadu did not change the character of the transaction, because the decisive test is whether the sale or purchase caused the movement of goods from one State to another.

Conclusion: The transactions were inter-State purchases and were not liable to tax as local sales at the point of last purchase.

Final Conclusion: No interference was called for with the Tribunal's finding, and the writ petition challenging that order failed.

Ratio Decidendi: Where a contract of sale occasions the movement of goods from one State to another, the transaction is an inter-State sale even if title or delivery passes in the destination State.

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