9911796707
TMI Blog1994 (11) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... undertaking of the State of Orissa and it was carrying on the business in timber, firewood and other minor forest produce in the district of Mayurbhanj. During the assessment year 1981-82, the assessee had sold timber in heaps and stacks by public auction. Terms and conditions of auction were published inviting intending purchasers to participate in the auction and thereafter auction sales were held in lots and were knocked down in favour of the highest bidders. Those bidders signed the bid-sheets and deposited 25 per cent of the auction money. After the bids were ratified by the competent authority, the necessary contract for sale was executed and on deposit of the price thereof the goods were sold. There were some purchasers who were not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew of the majority judgment, the assessee's contention having been rejected, an application was filed under section 24(1) of the Orissa Sales Tax Act for making a reference and as such the Tribunal has referred the question, as stated earlier. 3.. Mr. Patnaik the learned counsel appearing for the assessee, argues with great emphasis that the goods in question having moved out of the State of Orissa even if the sale might be completed within the State of Orissa, the same must be held to be an inter-State sale by virtue of the deeming provision in section 3 of the Central Sales Tax Act. According to him if the sale or purchase occasions the movement of goods from one State to another, then it shall be deemed to have taken place in the cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be held to be an inter-State sale and that character will not be changed on account of an interposition of an agent of the seller who may temporarily intercept the movement. Even in the two decisions of the Supreme Court relied upon by the learned counsel for the assessee, the same position of law has been indicated. In the case of Oil India Ltd. [1975] 35 STC 445 (SC) their Lordships on construction of clause 7 of the second supplement agreement came to hold that the movement of crude oil from the State of Assam to the State of Bihar was an incident of the contract of sale and, therefore, the sales to the refinery at Barauni were sales in the course of interState trade. Their Lordships further observed: "............. No matter in which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods from one State to another, but such movement is the result of a covenant in the contract of sale or is an incident of that contract. In the Orissa case on which Mr. Patnaik for the assessee relies ([1982] 51 STC 330 [Kunjabihari Sahoo v. State of Orissa]), this Court had held that a clear link had been established between the purchase of goods and the transport thereof to Bihar and, therefore, the transaction constituted an inter-State sale. Bearing in mind the aforesaid authoritative pronouncements of the apex Court and examining the so-called contract of sale as well as the terms and conditions therein and the findings arrived at by the forums below, it is difficult for us to hold that the movement of goods has occasioned from on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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