TaxTMI 
TaxTMI 
1975 (3) TMI 96
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.... The judgment of the court was delivered by MATHEW, J.-An agreement dated January 14, 1958, was executed by and between the Government of India, the Burmah Oil Company Ltd. and the Assam Oil Company Ltd. for the promotion of a new company, inter alia, with the object of obtaining mining lease for the production of petroleum and crude oil. The promotion agreement was later on modified by a supplemental agreement dated February 15, 1959. The petitioner-company was incorporated in accordance with the promotion agreement as modified by the aforesaid supplemental agreement. By an adoption agreement dated March 14, 1959, the petitioner adopted the promotion agreement of 1958 as modified by the said supplemental agreement. The petit....
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.... The Barauni Refinery is situated in Bihar while the other two refineries are situated in the State of Assam. At Barauni Refinery the crude oil which flows through the pipes from the oil-fields of Assam is pumped into the Indian Oil Corporation's tanks and thereafter it is measured. After the measurements are agreed to by both the parties, namely, the petitioner and the Indian Oil Corporation, the crude oil is taken delivery of by the Indian Oil Corporation on behalf of the Government of India. The petitioner-company has been filing regular sales tax returns before the Bihar sales tax authorities under the Bihar Sales Tax Act and was being assessed under that Act for the supply of crude oil to the refinery at Barauni treating the supply as....
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....r direction in the nature of mandamus directing respondents Nos. 4, 5 and 6 not to levy tax under the Bihar Sales Tax Act on the sales of crude oil made by the petitioner to the refinery at Barauni; (2) a writ, order or direction in the nature of certiorari quashing the various assessment orders passed by respondent No. 4 on the sales of crude oil made by the petitioner-company to the refinery at Barauni; and (3) a writ, order or direction in the nature of a mandamus directing respondents Nos. 4 to 6 to refund the various amounts collected as sales tax from the petitioner-company. The question for consideration in these writ petitions is whether the sales made by the petitioner in pursuance to clause 7 of the second supplemental agreemen....
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....e-line was undertaken by the petitioner in pursuance of the agreement and that that was for the specific purpose of transporting crude oil to Barauni from Assam. This can only point to the conclusion that the parties contemplated that there should be movement of goods from the State of Assam to the State of Bihar in pursuance to the contract of sale. Clause 7 of the 1961 agreement must need be read with its precursory clause 12 of the 1958 agreement since all the contracting parties were well aware of their respective obligations in the transactions arising out of the several agreements-not one of which can be left out of consideration. Even though clause 7 of the supplemental agreement does not expressly provide for movement of the goods,....