TaxTMI 
TaxTMI 
1964 (10) TMI 72
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....the order of the High Court of Orissa dated August 10, 1961, dismissing its application under section 24(2) of the Orissa Sales Tax Act, 1947. The appellant is a public company with its registered office in West Bengal and has branches in different States, including one in the State of Orissa. The appellant-company had registered itself as a dealer and held a certificate of registration issued by the Sales Tax Officer, Mayurbhanj, Baripada, under the Orissa Sales Tax Act, 1947. The main business of the company was to take forests on lease for the extraction of timber and sleepers. The company held a contract for supply of sleepers to the Sleeper Control Officer, Eastern Group, Calcutta. For this purpose it was extracting sleepers from the ....
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....ng [The State of Bombay and Another v. The United Motors (India) Ltd. and Others [1953] S.C.R. 1069; 4 S.T.C. 133.,] was that sales tax could be levied on inter- State trade because of the order of the President. It was only subsequently that this Court pointed out that there were two conditions in Article 286 and the President's Order removed only one of them and the other still continued to operate (The Bengal Immunity Co. Ltd. v. The State of Bihar and Others [1955] 2 S.C.R. 603; 6 S.T.C. 446., We need not enter into discussion of the controversies that took place then because the sale which is sought to be taxed in the present case is the first sale from the local dealer to the company which but for the fact that it was to a registered ....
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....issa Sales Tax Act, as amended by the Orissa Sales Tax (Amendment) Act, 1950, from December 21, 1950. Section 5(2)(a)(ii) of the Orissa Sales Tax Act, after the amendment, read as follows: "Sales to a registered dealer of goods specified in the purchasing dealer's certificate of registration as being intended for resale by him or for use by him in the manufacture or processing of any goods for sale other than the manufacture or processing of any goods declared from time to time as tax-free under section 6 or in the execution of any contract and on sale to a registered dealer of containers and other materials for the packing of such goods: Provided that when such goods are used by the registered dealer for purposes other than those specifi....
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.... constitutional prohibition contained in Article 286 of the Constitution of India; (2) Whether on the admitted facts that the goods in question were sold and delivered outside the State of Orissa for consumption therein it is within the legislative competency of the State Legislature to do the same; (3) Whether on the facts and circumstances of the case, the proviso to sub-clause (ii) of clause (a) of sub-section (2) of section 5 of the Orissa Sales Tax Act, 1947, comes within the powers conferred by entry 54 of List II of the Seventh Schedule to the Constitution of India and is intra vires of the State Legislature; (4) Whether the imposition of liability on the appellant-purchaser is within the ambit and scope of the Orissa Sales Tax Ac....
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....oo late now to plead facts. The result is fairly obvious. What is being sought to be taxed is not the sale to the Sleeper Control Officer but the earlier sale to the company by the local dealers which was tax-free as between one registered dealer and another. The first sale was independent of the sale to the Sleeper Control Officer as it was not in the course of inter-State trade and it could be taxed and the law imposing a tax on such a sale was not also ultra vires. The only question in this case was whether the certificate which the appellant-company gave to the local dealers was complied with or not or whether the proviso to section 5(2)(a)(ii) quoted above applied. The company had obtained the sleepers and the timber tax-free by reason....