STATE OF TAMIL NADU vs DHARANGADHARA TRADING CO. LTD.

The Supreme Court held that the sales by Dharangadhara Chemical Works Ltd. to the respondent Trading Company were inter-State sales under Section 3(a) of the Central Sales Tax Act, 1956. The Court clarified that the delivery of goods was completed through the transfer of documents of title, and not by physical delivery, thus establishing that the movement of goods was initiated by the terms of the contract. The appeal by the State was dismissed, affirming the Tribunal's and High Court's decisions that the sales were inter-State transactions.