1978 TAX. L. R. 2027 ::42 S T C 68

Madras High Court

Hon'ble Judge(s): P Govindan Nair , C.J. AND Varadarajan , J

Central Sales-tax Act (74 of 1956) , S.6— Inter-State sale-Movement of goods in two different parts of same State - Not inter-State sale. In order that a sale may be an inter-State sale, there must be movement of goods from one State to the State in which the buyer is. It is enough if the sale occasions the movement of the goods from one State to another. If as a result of contract of sale there was movement from one State to another, the transaction will clearly become exigible to tax under the Central Sales Tax Act because that would be an inter-State sale. But if the goods are moved as a result of a contract from one part of the State to another part of the State, there cannot be any inter-State movement. In the circumstances of the case movement of goods from Coimbatore to Madras both being places within the Tamil Nadu State cannot constitute an inter-State movement and cannot be said to be taxable under the Act. (Para 2) Anno: AIR Manual (3rd Edn.), Central Sales Tax Act, S. 6, N. 1. .....