ENGLISH ELECTRIC COMPANY OF INDIA LTD. vs THE DEPUTY COMMERCIAL TAX OFFICER & ORS.

The Supreme Court held that under Section 3(a) of the Central Sales Tax Act, the sale is considered an inter-State sale if the movement of goods from one State to another is an incident of the contract, regardless of where the property in the goods passes. The Court clarified that it is sufficient for the inter-State movement to be a result of a covenant in the contract, either express or implied. The appeal was dismissed, affirming that the contract of sale was between the appellant company and the Bombay buyer, with branches acting as different agencies.