STATE OF MYSORE vs GUDUTHUR THIMMAPPA & SON, & ANR.

The Supreme Court interpreted Rule 4A(iv)(b) of the Madras General Sales-tax (Turnover and Assessment) Rules, 1939, determining that the last dealer liable for sales tax is the one who sells cotton within the State, regardless of the buyer's residency. The Court held that since the delivery to the common carrier occurred within the State and the buyers insured the goods, they were considered the owners upon delivery. Consequently, the sales were not classified as inter-State trade, and the tax was to be levied from the non-resident buyers as the last dealers.