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of <h1>Inter-State Sales Exempt from Sales Tax: Tribunal Dismisses Appeals</h1> <h3>Caltex (India) Ltd. Versus State of Orissa</h3> The Tribunal dismissed the appeals, determining that the sales by the assessee were in the course of inter-State trade, exempt from Orissa sales tax. The ... - Issues:Interpretation of sales transactions as inter-State or intra-State trade under the Orissa Sales Tax Act.Analysis:The case involved an application under section 24(2) of the Orissa Sales Tax Act to determine if the sales by the assessee constituted inter-State or intra-State trade. The petitioner supplied high speed diesel oil and petroleum to the National Mineral Development Corporation (N.M.D.C.) for its project in Orissa. The transactions involved the movement of goods from Jamshedpur in Bihar to Kiriburu in Orissa. The petitioner argued that the transactions were inter-State and liable for Central sales tax, while the tax authorities contended they were intra-State and subject to Orissa sales tax.The Tribunal dismissed the appeals, stating that the goods were offered and supplied at Kiriburu, indicating an intra-State nature of the transactions. The correspondence between the parties and the absence of a written contract specifying inter-State movement were crucial in determining the tax liability. The Tribunal highlighted that the movement of goods was not an incident of the contract of sale, supporting the view that the sales were intra-State.The judgment referenced a Supreme Court decision involving Oil India Limited, where the movement of crude oil from Assam to Bihar was considered an incident of the contract of sale, making the sales inter-State. Drawing parallels, the court concluded that the transactions in the present case were inter-State sales, not liable for Orissa sales tax. The assessments were deemed without jurisdiction, and the assessee was awarded costs.In conclusion, the court held that the sales by the assessee were in the course of inter-State trade, exempt from Orissa sales tax. The judgment provided a detailed analysis of the transactions, emphasizing the importance of contractual terms and the movement of goods in determining the tax liability. Both judges agreed on the decision, and the reference was answered accordingly.
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