COMMISSIONER OF SALES TAX U.P. LUCKNOW, ETC. ETC. vs S/S SURESH CHAND JAIN, TENDU LEAVES DEALER, LALITPUR, ETC.E

The Supreme Court held that for a sale to be considered as inter-state trade under the Central Sales Tax Act, 1956, both a sale of goods and transportation of those goods from one state to another must occur. The Court emphasized that the onus is on the Revenue to disprove the assessee's claim of local sale. The Court found that T.P. Form IV, a transport permit, does not automatically indicate inter-state sales, as it merely certifies the validity of Tendu leaves' removal from the forest. The appeal by the Revenue was dismissed, upholding the lower court's ruling that the conditions for imposing sales tax were not met.