STATE OF UTTAR PRADESH & ORS. vs KASTURI LAL HAR LAL

The Supreme Court held that under Section 3(b) of the Central Sales Tax Act, 1956, a sale is deemed to occur in the course of inter-State trade if it involves the transfer of documents of title during the movement of goods. The Court clarified that the appropriate authority to impose and collect sales tax on inter-State sales is the State where the movement of goods commences, as per Section 9(1). The appeal was dismissed, affirming the High Court's decision that the Sales Tax Officer in Uttar Pradesh lacked jurisdiction to impose the tax in this case.