G. A. GALIAKOTWALA & CO. (P) LTD., MADRAS vs THE STATE OF MADRAS

The Supreme Court held that the transaction in question constituted inter-state sales under Section 3(b) of the Central Sales Tax Act, 1956, as the goods were sent from Bombay to Madras. The court clarified that the exemption under Section 8(5) applies only if the claimant has paid tax under the State Act, which was not the case here. Additionally, the appellant failed to prove that the buyer was a registered dealer as required under Section 6(2), thus disqualifying him from claiming the exemption. The appeal was dismissed, affirming the assessment by the State sales tax authorities.