M/S. HYDERABAD ENGINEERING INDUSTRIES vs STATE OF A.P.

The Supreme Court upheld the High Court's decision that the transactions in question constituted inter-State sales under Section 3(a) of the Central Sales Tax Act, 1956. The Court clarified that the sale or purchase of goods must be assessed for tax if it occurs in the course of inter-State trade or commerce. The appeal was dismissed, affirming the tax liability of the assessee for the disputed turnover of goods transported to out-of-state depots.