1967 (3) TMI 97

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..... n the course of inter-State trade and commerce and that the last purchases of raw skins not being made by it, it was not liable to charge either under the Central Sales Tax Act or under the Madras General Sales Tax Act. But the claim was rejected by the revenue at all the stages and also by the Tribunal. The point in both these cases turns on whether delivery of raw skins to out-of-State dealers in respect of the turnover of Rs. 2,17,727 was within the State of Madras; if it was, the claim of the petitioner that it would not be liable to tax under either of the Acts in respect of its purchase of raw skins and sales thereof to out-of-State dealers will be well-founded. The Tribunal relied on two facts for its view that the petitioner effec .....

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..... t once a sale or purchase outside all other States but this is subject to the provisions of section 3. That defines when a sale or purchase of goods takes place in the course of inter-State trade. Two tests are applied, one of which is that a sale or purchase takes place in the course of inter-State trade, commerce or intercourse if it occasions movement of the goods from one State to another, and the other test is that a sale or purchase takes place by transfer of documents of title, during the movement of the goods from one State to another. In this case there is no question of sale or purchase during the movement of the goods from one State to another. The question, therefore, would be whether the sale to the out-of-State dealers here oc .....

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..... a dealer, be it on a mistaken impression or a genuine plea that it is chargeable, nor collection of charges for loading by themselves will be conclusive. The terms will have to be looked at comprehensively and together in order to see whether the contract occasioned the movement of the goods. It is also noteworthy that in each of the invoices the loading charge is practically negligible in comparison with the probable charges for transport by lorry. It is not known who bore the transport charges. The petitioner's case is that the out-of-State dealer through his agent took local delivery within the State of Madras and in token thereof the agent has initialled or signed the invoices. This aspect will have to be examined with reference to the .....

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