M/S. I.D.L. CHEMICAL LTD. vs STATE OF ORISSA

The Supreme Court addressed the interpretation of the Central Sales Tax Act, 1956, in the context of stock transfers versus inter-State sales. The Court held that the movement of goods from the appellant's factory to its consignment agents was not an inter-State sale but a stock transfer, as the sales occurred only upon delivery to the collieries against specific indents. The judgment reversed the High Court's decision, affirming the Tribunal's finding that the transactions were not liable to tax under the Central Sales Tax Act, 1956.