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TMI Blog1973 (4) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... oners were pursuing their remedies under the statute and they should not be permitted to invoke the extraordinary jurisdiction of this court. Thereupon the petitioners' counsel withdrew the appeals from the appropriate forums and intimated this court that the writ petitions would be pressed. 3.. As the allegations are more or less the same in these writ petitions, we propose to deal with the facts as stated in O.J.C. No. 754 of 1970. The State Government by notification dated 6th August, 1962, declared that the sale of betel leaves would be liable to purchase tax from 1st September, 1962, at the rate of 3 per cent. By a subsequent notification the rate of tax was reduced to 2 per cent with effect from 1st June, 1963, and a rebate of 2 per cent was allowed if the dealer proved that the stocks on which purchase tax had been paid, had subsequently been sold in the course of interState trade or commerce. By notification dated 26th June, 1969, the provision for payment of rebate was deleted with effect from 1st July, 1969. 4.. The petitioners contend that the withdrawal of the provision for rebate amounted to double taxation of the turnover of the betel leaves. As a fact, the betel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods out of the territory of India only if the sale or purchase either occasions such export or is effected by a transfer of documents of title to the goods after the goods have crossed the customs frontiers of India. (2) A sale or purchase of goods shall be deemed to take place in the course of the import of the goods into the territory of India only if the sale or purchase either occasions such import or is effected by a transfer of documents of title to the goods before the goods have crossed the customs frontiers of India." 6.. Mr. Mohanty does not rightly challenge the power of the State Legislature nor the provision in the Act in the matter of levy of purchase tax on betel leaves. Section 3-B of the Orissa Act authorises the State Government to declare any goods or class of goods to be exigible to tax on the turnover of purchases. The only two contentions which are raised by him and which require examination in these cases are: (a) The withdrawal of the provision of rebate as provided under the Orissa Sales Tax Act leads to double taxation of the same turnover and, therefore, is bad in law. (b) There can be no levy of any purchase tax under the Orissa Act inasmuch as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms indicated that the expression "occasions the movement of goods" occurring in section 3(a) and section 5(2) of the Central Act has the same meaning. In the case of Tata Iron and Steel Co. Ltd. v. S.R. Sarkar[1960] 11 S.T.C. 655 (S.C.)., their Lordships of the Supreme Court at length dealt with the provisions of section 3(a) of the Central Act. In the case of State of Bihar and Another v. Tata Engineering Locomotive Co. Ltd.[1971] 27 S.T.C. 127 (S.C.)., their Lordships of the Supreme Court reviewed a series of decisions of that court in regard to the concept of "in the course of inter-State trade" and concluded by saying: "The decided cases establish that sales will be considered as sales in the course of export or import or sales in the course of inter-State trade and commerce under the following circumstances: (1) When goods which are in export or import stream are sold; (2) When the contracts of sale or law under which goods are sold require those goods to be exported or imported to a foreign country or from a foreign country as the case may be or are required to be transported to a State other than the State in which the delivery of goods takes place; and (3) Whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court dealt with the case of a fish dealer. Fish in Orissa is liable to purchase tax. A reference was made to this court under the Orissa Act to answer the question as to whether the State of Orissa was competent to impose purchase tax on goods which were meant for sale outside Orissa. On an examination of the legal aspect with reference to several cases, their Lordships concluded thus: "Applying the aforesaid test to the present case, it would be seen that the assessee has made out no case that he was under any obligation by virtue of any contract or understanding to export fish to Calcutta. There are also no materials or finding that the fishermen selling the fish to the assessee had anything to do with the export of fish by the assessee to Calcutta. No case was made out and no finding sought that the assessee was under any obligation to export the fish to Calcutta after purchase from the fishermen. Thus the fishermen are in no way connected with the export of fish to Calcutta though in fact fish purchased were exported. The assessee could have sold the fish inside Orissa after the purchase. Even assuming that the assessee had the intention from the very start that he wou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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