THE COMMNR. OF SALES TAX, U.P. vs M/S BAKHTAWAR LAL KAILASH CHAND ARHTI

The Supreme Court addressed whether purchases made by a commission agent on behalf of ex-State principals, which were dispatched outside Uttar Pradesh, constituted inter-State purchases under Section 3 of the Central Sales Tax Act, 1956. The Court upheld the High Court's ruling that such purchases were indeed inter-State transactions and thus not subject to tax under Section 3-D of the U.P. Sales Tax Act, 1948. The judgment clarified that the nature of the transaction and the intent of the parties were critical in determining tax liability.