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Cooperative Sugars (Chittur) Ltd. vs State Of Tamil Nadu on 13 April, 1993

iv."15. The question as to whether a particular sale is an inter-State sale is a question of fact to be determined in the light of the statutory provisions. That https://www.mhc.tn.gov.in/judis 34/44 T.C.Nos.77 to 80 of 2015& W.P.No.2322 of 2015 question can also be regarded as a mixed question of law and fact in so far as the correct application of the relevant principles of law to these facts are concerned. A consideration of the factual background in which the decisions were rendered in other cases is not of much assistance in determining as to whether a particular sale is an inter-State sale or not. The essential tests to be applied are well-settled. Unless the movement and the sale form an integral whole, the sale cannot be an inter- State sale. A sale which ostensibly takes place within the State can be an inter-State sale if the movement is essential and inevitable, or necessary incidental, part of the sale transaction as held by the Supreme Court in the decision reported in [1993] 90 STC 1 [Co-operative Sugars (Chittur) Ltd. v. State of Tamil Nadu). In that case, sugar purchased by the agent of the sugar factory situated in Kerala was normally be required to be transported to Kerala in terms of the Government Order, and could not have been diverted within the State. That sale was held to be an inter-State sale as there was an obligation on the buyer to whom the goods had been sold out to take the goods any of the State to its factory in the neighbouring State.”
Supreme Court of India Cites 4 - Cited by 12 - Full Document

Moti & Co. vs State Of Tamil Nadu on 13 August, 1997

In Moti and Co. v. State of Tamil Nadu (1999) 113 STC 53 (Mad), the Division Bench of the Madras High Court addressed whether sales of tea purchased in Coonoor auctions and sold through brokers to buyers outside Tamil Nadu qualified as inter-State sales. The appellant claimed the sales were local, asserting that the goods were delivered ex- godown at Coonoor, the broker issued delivery orders, and transport charges were reimbursed by the out-of-state buyer. The appellant contended that arranging transportation was a trade accommodation, and the sale was completed within Tamil Nadu. The assessing officer, however, treated the transactions as inter-State sales because the appellant paid the lorry freight. While the appellate authority held the sale was complete within the state, the Joint Commissioner restored the assessing officer's order.
Madras High Court Cites 19 - Cited by 3 - Full Document

Karnataka Soaps And Detergents Ltd. vs The District Forest Officer, ... on 7 February, 2005

In Karnataka Soaps and Detergents Ltd. v. District Forest https://www.mhc.tn.gov.in/judis 37/44 T.C.Nos.77 to 80 of 2015& W.P.No.2322 of 2015 Officer, Sathyamangalam & Others (1980) 3 SCC 358, the Hon'ble Supreme Court focused on the point of sale and the passing of property in goods sold at auctions. It was held that the property in goods does not pass at the fall of the hammer but upon fulfillment of conditions such as full payment, weighment, and setting apart of goods for delivery.
Madras High Court Cites 19 - Cited by 21 - M Katju - Full Document
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