9911796707
TMI Blog1980 (8) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... h Eastern Railway needed a lot of sleepers made of timbers for laying and maintenance of railway tracks. At the request of the railway officials, the Divisional Forest Officers of the State Government were negotiating for purchase of sleepers. The Divisional Forest Officers, Dhenkanal, contacted the assessee and in terms of the agreement between the Governor of Orissa represented by the Divisional Forest Officers and the assessee, sleepers of different quantities were supplied during the three years. These sleepers were despatched by rail to different places outside the State of Orissa as per the specifications of the South Eastern Railway authorities. The assessing officer rejected the claim laid by the assessee under section 5(2)(A)(a)(ii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w of the concession of the counsel. The self-same question arose again in the case of Singhbhum Timber Trading Company v. State of Orissa (S.J.C. No. 130 of 1970 disposed of on 19th August, 1975, by a Bench consisting of both of us) page 334 infra. In that case, we stated: "The Forest Utilisation Officer of the Government of Bihar was bound under an agreement made with the railway administration for securing sleepers for the railway tracks. In fact, it is clear from the several minutes that even signed cheques were made over by the railway administration for buying the sleepers. The sleepers were thus purchased with the money of the railways and were intended to be exclusively used for the purposes of the railways. Undoubtedly, the slee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present question was not really canvassed and considered. 4.. On the facts of the case, we are inclined to agree that the view expressed by us in Singhbhum Timber Trading Company v. State of Orissa (S.J.C. No. 130 of 1970) page 334 infra correctly indicates the law. As the facts are similar, we would answer the question referred to us by saying that the transactions were exigible to Central sales tax. There will be no order for costs. DAS, J.-I agree. Reference answered accordingly. Appendix I [The decision of the Orissa High Court consisting of R.N. MISRA and B.K. RAY, JJ., in State of Orissa v. Orissa Forest Corporation Ltd. and Others (Special Jurisdiction Cases Nos. 171 to 174 of 1971 decided on 24th April, 1973) is print ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities held that there were two sales-one by the contractors to the forest officers and thereafter by the forest officers to the railway administration. So far as the Forest Corporation, the assessee in these cases, is concerned, on the aforesaid finding it was liable to be assessed under the Orissa Sales Tax Act. After this finding was recorded in second appeals, the Tribunal directed the matter to be remitted back for reassessment. Thereupon, at the instance of the State, the above questions have been referred. 3.. So far as the assessee's case is concerned, the question of the turnover being exigible to Central sales tax does not at all arise. The learned counsel for both sides therefore rightly asked us not to answer this question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany v. State of Orissa (Special jurisdiction Case No. 130 of 1970 decided on 19th August, 1975) is printed below: ] SINGHBRUM TIMBER TRADING COMPANY V. STATE OF ORISSA MISRA, J.-This Court by order dated 22nd November, 1971, required the Member, Sales Tax Tribunal, to state a case and refer the following two questions for determination of this Court: "(1) Whether, in law, there was a contract for supply of sleepers between the petitioner and the Government of India in the Ministry of Railways through the agency of the Government of Bihar? (2) Whether the transaction between the petitioner and the Government of Bihar constitutes inter-State Sale?" Accordingly the Tribunal has drawn up a statement of the facts from which it appears ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o some of the minutes but did not agree with the contention of the assessee that there was a preexisting contract pursuant to which the goods had been sold by the assessee to the Forest Utilisation Officer of Bihar which necessarily envisaged movements of the goods. We do not think that the Tribunal took the correct view of the matter. The Forest Utilisation Officer of the Government of Bihar was bound under an arrangement made with the railway administration for securing sleepers for the railway tracks. In fact, it is clear from the several minutes that even signed cheques were made over by the railway administration for buying the sleepers. The sleepers were thus purchased with the money of the railways and were intended to be exclusive ..... X X X X Extracts X X X X X X X X Extracts X X X X
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