STATE OF ORISSA Vs. CHAKOBHAI GHELABHAI AND CO

JUDGEMENT

(1.) THE following Judgment of the court was delivered by

(2.) THIS is an appeal on a certificate granted by the High court of orissa. The appellants are the State of orissa and the Collector of Commercial Taxes, orissa. The respondent is a partnership firm called Messrs. Chakobhai Ghelabhai and Company dealing in ` bidi ' leaves.

(3.) ON behalf of the appellants it has been contended that the High court was in error in respect of all the three findings at which it had arrived. As to the finding of the High court that the assessment orders were bad because of the repeal of the second proviso to s. 2(g) of the Act, we think that the High court was clearly in error. In view of the admission made on behalf of the respondent, it was quite unnecessary to deal with the second proviso s. 2(g) of the Act or to consider the effect of its repeal by the Adaptation of Laws Order, 1950, or the effect of the saving clause in paragraph 20 thereof. The admission on behalf of the respondent, made in very clear terms as recorded by the appellate authority, was that the sales were completed in orissa. Section 2(g) of the Act states: `S. 2(g)-` sale ` means, with all its grammatical variations and cognate expressions, any transfer of property in goods for cash or deferred payment or other valuable consideration, including a transfer of property in goods involved in the execution of contract but does not include a mortgage, hypothecation, char or pledge.` The admission made in this case clearly brings the sales of 'bidi' leaves within s. 2(g) of the Act; and as the sales were completed in orissa, they were liable to tax under the Act. It was quite unnecessary to go to the second proviso to s. 2(g) in view of the admission of the respondent.