STATE OF ORISSA Vs. KARAMSHI WAGHJI CHAUDA

JUDGEMENT

(1.) This appeal on a certificate granted by the High court of orissa is from the judgment and order of the said High court dated 8/08/1955- The State of orissa and the Sales Tax Assessing Authorities are the appellants. ' The assessee is the respondent.

(2.) The assessee is a forest contractor in orissa and carried on the business of collecting bamboo, firewood, timber etc. , from the forest of kalahandi in orissa. He was assessed to sales tax for eight quarters beginning from 1/04/1949' and ending on 31/03/1951. The Sales Tax Officer found that the assessee stocked the bamboo, timber etc. in his godowns at Lanjigorh and Rupra Road in orissa, and then sold the goods to customers outside Orissa, the goods being despatched by train and delivered to those customers. A certificate was issued against the assessee for recovering the tax imposed.

(3.) Against the Orders of assessment the assessee moved the High court by means of a writ petition. He contended that the sales took place outside orissa and in 'any case the sales of the period after the coming into force of the Constitution could not be taxed by orissa by reason of the Explanation to Article 286 (1) (a) of the Constitution, as it then stood. The assessee also challenged the legality of the notification by which the orissa Sales Tax Act, 1947, was extended to Kalahandi which was formerly a feudatory State.