Petitioner directed to file returns to determine Tendu Leaves sale tax status

The court directed the petitioner to file returns before the assessing authority to determine whether the auction sale of Tendu Leaves constituted an intra-state or inter-state sale for the levy of State Sales Tax. The petitioner was granted liberty to raise all relevant issues before the authority, following the procedure outlined in the Central Sales Tax Act 1956. The petition was disposed of with instructions for the authority to adjudicate on the matter based on facts and law, similar to a previous Supreme Court decision on the issue.

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Issues involved:
The issue involved in this case is the levy of State Sales Tax on auction sale of Tendu Leaves, whether it constitutes an intra State sale or an inter State sale under the Central Sales Tax Act 1956.

Judgment Summary:

The petitioner challenged the levy of State Sales Tax on auction sale of Tendu Leaves by the respondent Federation, arguing that it should not be subjected to tax under the State Act as it is an intra State sale. The Court noted that similar issues had been decided by the Supreme Court in a previous case, where it was held that the question of intra state sale or inter state sale must be determined based on the facts of each case in accordance with the provisions of Section 3 of the Act. The Court directed the petitioner to file returns before the assessing authority, who would then adjudicate on the matter after providing an opportunity for a hearing.

The learned counsel for both parties agreed to dispose of the present petition in similar terms as the previous case. Considering the Supreme Court's decision and the parties' submission, the Court granted liberty to the petitioner to file returns before the authority and raise all issues regarding intra state sale or inter state sale. The authority would then decide the matter based on facts and law, following the prescribed procedure.

Therefore, the petition filed by the petitioner was disposed of with liberty to file returns before the concerned authority and raise relevant issues for determination regarding intra state sale or inter state sale, as appropriate, in accordance with the law and procedure.

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