1987 (11) TMI 350

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....ilisation Officer, Bihar, having his office in the town of Ranchi. In a high level meeting between the representatives of the Ministry of Railways and some other Ministries of the Central Government and the Government of Bihar, it was agreed that out of the timber coupes leased out by the State of Bihar to the forest contractors, the contractors will be required to make certain number of sleepers and supply them to the Union of India in the Ministry of Railways or the Ministry of Works, Housing and Supply, for which, necessary funds were to be placed at the disposal of the State Government by the Central Government to be utilised by the Conservator of Forests. 4.. The Saranda Forest Division in the State of Bihar is adjacent to the territo....

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....STC 487 which was a case under the Central Sales Tax Act dealing with almost an identical question. There also, the Government of Orissa and the Railway Administration had entered into an agreement by which the Divisional Forest Officers in Orissa were allowed to obtain sleepers from the contractors within their respective areas, pay for them on behalf of the railways in similar manner and supply the sleepers to the railways. It was held that there being no intention to carry on the transaction for profit, but only for fulfilling an obligation to the Central Government in the interest of the country, the Divisional Forest Officers were not "dealers" under the Sales Tax Act. 7.. This decision, no doubt, fully supports the stand of Mr. Mohan....