KELVINATOR OF INDIA LTD. vs THE STATE OF HARYANA

The Supreme Court interpreted Section 3(a) of the Central Sales Tax Act, 1956, establishing that a sale must occasion the movement of goods between states to be taxable. The Court held that for a sale to be considered as occurring in the course of interstate trade, there must be a contract of sale preceding the movement of goods, which was not present in this case. Consequently, the appellant was not liable for Central Sales Tax as the movement of goods was not caused by a contract of sale, leading to the dismissal of the appeal.