TaxTMI 
TaxTMI 
1987 (11) TMI 349
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....ries on business of taking lease of forest coupes, collecting timber from it and preparing logs, timbers and sleepers, etc., for sale. The sleepers are usually sold to the Indian Railways. The petitioner is registered under the Act having Registration Certificate No. MS(R)-25 and also under the Central Sales Tax (Registration and Turnover) Rules having been assigned registration No. BCR-14. During the assessment year 1976-77 the petitioner supplied sleepers to the railways. For the said year he returned gross turnover at Rs. 1,31,153 and taxable turnover at Rs. 1,14,612.34 and paid tax of Rs. 6,204.85 under the Act. The opposite party No. 1 taking up the assessment under section 12(4) of the Act as per order under annexure-2, excluded the s....
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....imber dealer, that is, the petitioner and the Divisional Forest Officers under the State Government and the second one between the Divisional Forest Officers and the railways. The first sale, according to the authority, was exigible to be taxed under the Act. The reasons which appeared to have prompted the authority to come to this conclusion were that the petitioner received payment from the concerned Divisional Forest Officer inside the State and as such the transaction was intra-State sale; that there was no pre-existing contract envisaging transport of sleepers to outside the State in pursuance of which purchases and sales of sleepers were made; that there was no clear link between the purchase and sale and transport thereof to places o....
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....nce long. The arrangement has been considered by this Court in several cases while dealing with this very question, whether the transaction is exigible to Orissa sales tax or Central sales tax. This Court in the case of Kunjabihari Sahoo v. State of Orissa [1982] 51 STC 330 and in the case of Singhbhum Timber Trading Company v. State of Orissa [1982] 51 STC 334 (Appendix II to [1982] 51 STC 330), has taken the view that the transaction is one of inter-State sale and therefore exigible to Central sales tax. In the first case the facts considered by the court were that at the request of the officials of the South Eastern Railway, the Divisional Forest Officer contacted the assessee, a forest contractor and a registered dealer under the Act, a....