MAHADEB PRASAD GANESH NARAYAN Vs. STATE OF ORISSA

JUDGEMENT

(1.) SUB -rule (11) was added to rule 12 of the Central Sales Tax (Orissa) Rules, by the Government of Orissa, Finance Department Notification No. 6854/CT/66 dated 4th May, 1966. The sub-rule runs thus :

(2.) TO appreciate this attack, it would be appropriate to examine some of the provisions of the Act. Section 3 lays down that a sale or purchase of goods shall be deemed to take place in the course of inter-State trade or commerce if the sale or purchase (a) occasions the movement of goods from one State to another or (b) is effected by a transfer of documents of title to the goods during their movement from one State to another. Explanation 1 appended to this section says :

(3.) SUB -section (3) of section 13 of the Act prescribes that the State Government may make rules not inconsistent with the provisions of the Act and the rules made under sub-section (1) to carry out the purpose of the Act. Since the impugned sub-rule is clearly inconsistent with the provisions of sub-section (4) of section 8, it must be declared ultra vires.