When is a sale or purchase of goods said to take place outside a State
Section 4 of the Central Sales Tax Act, 1956 deals with when is a sale or purchase of goods said to take place outside a State. Subject to the provisions contained in section 3, when a sale or purchase of goods is determined in accordance with sub-section (2) to take place inside a State, such sale or purchase shall be deemed to have taken place outside all other States. The Act came into force on 05 Jan 1957.
(1) Subject to the provisions contained in section 3, when a sale or purchase of goods is determined in accordance with sub-section (2) to take place inside a State, such sale or purchase shall be deemed to have taken place outside all other States.
(2) A sale or purchase of goods shall be deemed to take place inside a State, if the goods are within the State--
(a) in the case of specific or ascertained goods, at the time the contract of sale is made; and
(b) in the case of unascertained or future goods, at the time of their appropriation to the contract of sale by the seller or by the buyer, whether assent of the other party is prior or subsequent to such appropriation
Explanation.--Where there is a single contract of sale or purchase of goods situated at more places than one, the provisions of this sub-section shall apply as if there were separate contracts in respect of the goods at each of such places.
Section 4, The Central Sales Tax Act, 1956 (Act 74 of 1956).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 27
- Arunachal Pradesh Goods Tax Act, 2005 (Act No. 3 of 2005) s. 7
- Assam Sales Tax (Amendment) Act s. 2
- M.P. Commercial Tax Act s. 2 Definitions
- M.P. Commercial Tax Act s. 79 Sales not liable to tax
- Chhattisgarh Value Added Sales Tax Act s. 2
- Daman and Diu Value Added Tax Regulation 2005 s. 7
- Goa Value Added Tax Act s. 87 Savings
- Gujarat Motor Spirit Cess Act s. 33
- Jharkhand Value Added Tax Act s. 2
- Jharkhand Value Added Tax Act s. 9 Levy of Tax on Sale and Determination of Taxable Turnover
- Jharkhand Value Added Tax Act s. 10
- Jharkhand Value Added Tax Act s. 49 Sales not liable to Tax and Zero Rated Sales
and 15 more
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Commissioner of Com. Taxes, Tvm vs Ktc Automobiles
Court's Decision & Legal Precedent
In the case of motor vehicles, although registration is technically a post-sale event, in practical terms the sale is co-terminus with registration because the dealer cannot lawfully deliver possession to the purchaser until the vehicle reaches the registering authority's office for inspection and registration. Motor vehicles remain unascertained goods until appropriation occurs at the registration office. Therefore, the situs of sale of a motor vehicle is at the location of the registration authority where the vehicle is registered, not at the location of the dealer's office. Property in the motor vehicle passes to the buyer when possession is handed over at or near the registration office in a deliverable and registrable state. For purposes of sales tax, the sale is deemed to occur at the place of registration.
On this section: Determines situs of sale for specific goods (at place of contract) and unascertained goods (at place of appropriation); applied to determine where motor vehicle sale occurred
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… the State or in the course of export and therefore not liable to tax under the Andhra Pradesh General Sales Tax Act, 1957, it was observed by the Andhra Pradesh High Court that the goods were specific and ascertained and were within the State when the contract of sale took place and therefore the requirements of Section 4(2)(a) of the Central Sales Tax Act, 1956 were fully satisfied and the sales must be said to have taken place inside the State; but as the goods sold were meant for consumption during voyage and they had no destination in any foreign country where they could be received as imports, the sales were not sales in the …
Made under this section, and citing it
4 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 2 instruments name this provision in its title or its text without being made under it.
Questions about Section 4
What have the courts held on Section 4 of the Central Sales Tax Act?
Commissioner of Com. Taxes, Tvm vs Ktc Automobiles (29 Jan 2016) is the leading judgment on this section among those set out below: Determines situs of sale for specific goods (at place of contract) and unascertained goods (at place of appropriation); applied to determine where motor vehicle sale occurred.
How do I find court cases under Section 4 of the Central Sales Tax Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Central Sales Tax Act 4, section 4 Central Sales Tax Act, section 4 of the Central Sales Tax Act. People searching for it also type section 4 of central sales tax act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Commissioner of Com. Taxes, Tvm vs Ktc Automobiles (29 Jan 2016).
What should I read with Section 4 of the Central Sales Tax Act, and has it changed?
Its own text turns on section 3 (When is a sale or purchase of goods said to take place in the course of inter-State trade or commerce), so none of them can safely be read on its own. 27 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 4: most recently Central Sales Tax (Delhi) Amendment Rules, 2014. (2014), then Central Sales Tax(Delhi)AmendmentRules,2014 (2014), and 2 more.
When did Section 4 of the Central Sales Tax Act come into force?
Section 4 of the Central Sales Tax Act, cited as Central Sales Tax Act 4, came into force on 05 Jan 1957, having been enacted on 21 Oct 1956. It is in force as at the date shown on this page.
Other sections of this Act
- 7. Registration of dealers1541 words
- 2. Definitions1286 words
- 13. Power to make rules1029 words
- 8. Rates of tax on sales in the course of inter-State trade or commerce992 words
- 9. Levy and collection of tax and penalties807 words
- 6. Liability to tax on inter-State sales664 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.