SOUTH INDIA VISCOSE LTD. vs STATE OF TAMIL NADU

The Supreme Court held that the sale of goods manufactured in Tamil Nadu and sold to buyers in Maharashtra and Gujarat through an agent in Bombay constituted an inter-State sale under Section 3(a) of the Central Sales Tax Act, 1956. The Court established that for a sale to be considered inter-State, there must be a connection between the contract of sale and the movement of goods from one State to another. The Court upheld the findings of the lower authorities that a contract of sale was established within the stipulated time, thus affirming the exigibility of the goods to Central Sales Tax.