- (1.) This appeal by special leave is from the judgment dated 7th November, 1972 of the High Court of Madras.
(2.) The principal question in this appeal is whether the sales of cotton by the appellant to the mills at Tirunelveli and Karuru were inter-State sales under Section 3 (a) of the Central Sales Tax Act called the Central Act or are second sales under State Sales under Section 3 (b) of the Central Act.
(3.) The appellant has its place of business at Coimbatore. The Mills are situated within the State of Madras. The Mills entered into an agreement with the appellant for purchase of cotton. The appellant in turn placed orders with its sellers at Bombay for purchase of cotton. The appellant directed its Bombay sellers to despatch the goods to the mills as consignees. The Bombay seller sent the consignment to the mills but the railway receipts were sent by the Bombay seller to the appellant. The appellant then endorsed the same in favour of the mills after collection of the substantial portion of the sale price.;