Om Prakash, J. - (1.) This is a revision against the Tribunal's order dated 24th March, 1986 (annexure 2 to the revision petition) by the assessee, who entered into an agreement (annexure 3 to the revision petition) with the Secretary to the President of India to sell gold laces, gold braids and gold jhallars at the rate, specified in Clause 1 of the aforesaid agreement. The assessee's total taxable turnover was assessed by the Sales Tax Officer under the Central Sales Tax Act at Rs. 63,747 on which tax payable was worked out to Rs. 2,143.50. The Assistant Commissioner (Judicial) and the Sales Tax Appellate Tribunal both affirmed the order of the Sales Tax Officer.
(2.) This is how the assessee has come up in revision before this Court. The question for consideration is whether the sale of the aforesaid items to the President of India through the Secretary under the agreement to sell (annexure 3) was rightly held as inter-State sale within the meaning of Section 3(a) of the Central Sales Tax Act, 1956 (for short, "the Act, 1956") by the authorities below. Section 3 of the Act, 1956, so far as relevant, reads thus: A sale or purchase of goods shall be deemed to take place in the course of inter-State trade or commerce if the sale or purchase, (a) Occasions the movement of goods from one State to another ; ....
(3.) In Tata Iron and Steel Co. Ltd. v. S.R. Sarkar [1960] 11 STC 655, the Supreme Court took the view which has been consistently followed in a catena of authorities that the sale occasions the movement of goods from one State to another within Section 3(a) of the Central Sales Tax Act when the movement is the result of a covenant or incident of the contract of sale. In Balabhagas Hulaschand v. State of Orissa [1976] 37 STC 207, the Supreme Court held that the word "sale" appearing in Section 2(g) denning sale as also in Section 3(a) denning inter-State sale of the Act, 1956, includes an agreement to sell. Admittedly the assessee personally carried the items to the Rashtrapati Bhawan, New Delhi, which he agreed to sell under the agreement (annexure 3) to the President of India through the Secretary.;