1978 (8) TMI 209 - HC - VAT and Sales Tax

Summary

The revising authority questioned whether supplying bardana to ex-U.P. principals constituted inter-State sales. The assessee acted as a purchasing agent for ex-U.P. principals, buying foodgrains and gunny bags for packing. The Judge (Revisions) concluded that the bardana price should not be included in the sales turnover for Central Sales Tax Act purposes as the assessee did not sell the gunny bags. Therefore, no tax was imposed under the Central Sales Tax Act. The High Court ruled that supplying bardana to ex-U.P. principals did not amount to inter-State sales.