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TMI Blog1976 (9) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... . 608 of 1973. S.N. Prasad, R.N. Sachthey and Girish Chandra, Advocates, for respondent No. 3 in C.A. No. 1838 of 1969 and W.P. Nos. 483-487 of 1974. D.N. Mukherjee, G.S. Chatterjee and D.P. Mukherjee, Advocates, for the respondent No. 4 in W.P. Nos. 483-487 of 1974. K.S. Ramamurthi, Senior Advocate (V. Nataraj, C. Natarajan and D.N. Gupta, Advocates, with him), for the appellants/petitioners. S.C. Manchanda, Advocate, and O.P. Rana, Advocate, for the respondent No. 5 in W.P. Nos. 483-487 of 1974. -------------------------------------------------- The judgment of the Court was delivered by RAY, C.J.-These two appeals by certificate and the writ petitions turn on the question whether th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Bombay was an incident of or occasioned by the sale itself it would be taxable under section 3(a) of the Central Sales Tax Act. There was not and there could not be any contract of sale between the factory of the seller-appellant at Madras branch and the Bombay branch of the appellant. It is obvious that the Bombay branch is the agent of the seller-appellant. The appellant could not be the buyer as well as the seller. The contention of the appellant is that the goods were sent by the factory at Madras branch to the Bombay branch and thereafter the goods were sold by the Bombay branch to the Bombay buyer. The sale as well as the movement of the goods from Madras to Bhandup at Bombay was a part of the same transaction. The movement of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory at the Madras branch that some of the goods against the order of the Bombay buyer were ready for despatch. The Bombay branch asked the Bombay buyer to give the details of despatch and insurance instructions per return of post. The Bombay branch thereafter wrote to the Madras branch factory stating "please despatch the equipment covered by our above indent by goods train to Bhandup Railway Station freight to pay. The railway receipt and other documents to be sent to us for disposal ". The Madras branch factory despatched the goods from Madras to Bombay by goods train and gave intimation to the Bombay branch. The goods were delivered to the Bombay buyer at Bhandup through clearing agents. The goods were despatched from Madras at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e which occasions the movement of goods from one State to another. The inter-State movement must be the result of a covenant, express or implied, in the contract of sale or an incident of the contract. It is not necessary that the sale must precede the inter-State movement in order that the sale may be deemed to have occasioned such movement. It is also not necessary for a sale to be deemed to have taken place in the course of inter-State trade or commerce, that the covenant regarding inter-State movement must be specified in the contract itself. It will be enough if the movement is in pursuance of and incidental to the contract of sale. When a branch of a company forwards a buyer's order to the principal factory of the company and instruc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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