Statutory procurement can still be a sale, and if the sale occasions movement to another State it is inter-State turnover.

Compulsory procurement under the Orissa Rice Procurement (Levy) Order, 1964 constituted sales because the essential elements of transfer of property for consideration remained present and the levy order did not exclude contractual assent in substance. The transactions were also inter-State sales because the sale to the purchasing authority directly occasioned movement of goods to different places in West Bengal, bringing them within section 3 of the Central Sales Tax Act. The Tribunal's view was upheld and the reference was answered against the assessee.

---

---

Issues: (i) Whether the compulsory procurement transactions under the Orissa Rice Procurement (Levy) Order, 1964 constituted sales. (ii) Whether the sales to the joint Director of Food amounted to inter-State sales exigible to Central sales tax.

Issue (i): Whether the compulsory procurement transactions under the Orissa Rice Procurement (Levy) Order, 1964 constituted sales.

Analysis: The levy order did not eliminate the essential elements of a sale. The parties were identified, property in the goods passed from the licensee to the purchasing authority, and consideration was payable for the transfer. The later Supreme Court approach treating similar control orders as leaving room for contractual consent was applied, and the earlier contrary view was not followed.

Conclusion: The transactions constituted sales.

Issue (ii): Whether the sales to the joint Director of Food amounted to inter-State sales exigible to Central sales tax.

Analysis: The sale to the purchasing authority directly occasioned the movement of goods to different places in West Bengal, bringing the transaction within section 3 of the Central Sales Tax Act. The movement was not merely incidental but was the result of the sale itself.

Conclusion: The sales were inter-State sales and were liable to Central sales tax.

Final Conclusion: The reference was answered against the assessee and the Tribunal's view was upheld.

Ratio Decidendi: A transaction under a statutory procurement order is a sale where the transfer of property for consideration occurs with mutual assent in substance, and if the sale itself occasions movement of goods to another State, it is an inter-State sale under section 3 of the Central Sales Tax Act.

---