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Report No. 30

31. Cement Marketing Co. case, Singareni case and Bengal Immunity case.-These observations were again quoted with approval in Cement Marketing Company v. State of Mysore, [AIR 1963 SC 980 (983 and 984), para. 11] which was also a case of inter-State sale under Article 286(2) as it stood before its amendment. In the recent case reported in AIR 1966 SC 563, Singareni Collieries Co. v. Commissioner of Commercial Taxes where the Supreme Court were considering among other sales also sales for the period September 7, 1955 to September 10, 1956 under which coal had been actually delivered outside the State of Andhra for consumption in those States, the Supreme Court observed in para (20) as follows:-

'As pointed out by Venkatarama Ayyar J. in the Bengal Immunity Company's case [(1955) 2 SCR 603: AIR 1955 SC 661].

"A sale could be said to be in the course of inter-State trade only if two conditions concur: (1) a sale of goods and (2) a transport of those goods from one State to another under the contract of sale. Unless both these conditions are satisfied there can be no sale in the course of inter-State trade.".

"In these transactions relating to supply of coal, which we have assumed are sales, coal was transported in pursuance of the allotment orders to other States. We have also assumed for the purpose of this argument that compliance with allotment orders resulted in a contract of sale. The transactions were unquestionably in the course of inter-State trade."

Section 5 of the Central Sales Tax Act, 1956 - Taxation by the States of Sales in the Course of Import Back

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