OIL INDIA LTD. vs THE SUPERINTENDENT OF TAXES & OTHERS

The Supreme Court ruled that under Section 3 of the Central Sales Tax Act, a sale is deemed to occur in the course of inter-State trade if it results in the movement of goods between states. The Court held that the supply of crude oil from Assam to the Barauni Refinery in Bihar constituted an inter-State sale, as the movement of goods was a direct result of the sales agreement. Consequently, the petitioner was liable for Central Sales Tax on the transaction, and the writ for mandamus against the Assam Sales Tax Authorities was denied.