1966 (2) TMI 64

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..... uestion of law effectively, it is the duty of the Financial Commissioner to state the case properly. However, we have not thought it fit to send the cases back to the Financial Commissioner to enable him to restate them properly because the question that has been referred to us is a pure question of law and does not depend, for its determination, on the facts of both the cases. The question of law, that has been referred to us, is as follows: "Whether, on the facts and circumstances of this case, the goods sent from Punjab to Uttar Pradesh per V.P.P. and thus sold are not liable to tax under the Central Sales Tax Act, 1956, and such tax is not leviable by the Punjab authorities?" The contention of the learned counsel for the assessee .....

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..... de or commerce if the sale (a) occasions the movement of goods from one State to another. * * * *" We are not concerned with the remaining part of this provision for our purposes. The sale by V.P.P. would surely be covered by section 3. The expression "occasions the movement of goods has been considered by their Lordships of the Supreme Court in Tata Iron and Steel Co. Ltd., Bombay v. S.R. Sarkar and Others[1960] 11 S.T.C. 655; A.I.R. 1961 S.C. 651., to mean that in which the movement of goods from one State to another is the result of a covenant or incident of the contract of sale, and the property in the goods passes in either State. This view was again reiterated in State Trading Corporation of India Ltd., and Another v. The State .....

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..... law, it hardly matters whether the goods move before the sale is completed or after the sale is completed. In order to be an inter-State sale, the sale must answer the definition of the same in section 3 of the Central Sales Tax Act, that is, there must be movement of goods in connection with the sale. Two things must co-exist: a sale of goods and movement of goods from one State to another. In the present case, both the requirements of section 3 are satisfied. We are therefore, clearly of the view that the sale in the present case is an inter-State sale. The contention of the learned counsel for the assessee, that the movement of the goods must precede the sale before it can be an inter-State sale, is wholly untenable. Mr. Sarin, learne .....

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