ASHOK BIRI Vs. STATE OF ORISSA

JUDGEMENT

(1.) IS the purchase of kendu leaves by the petitioners an inter State trade or intra State trade ? This is the limited question that arises for consideration in this batch of writ petitions. As common issue is involved in all these cases, they were heard together and are disposed of by this judgment. For the sake of convenience, we have referred to the pleadings and documents of O.J.C. No. 9724 of 2000.

(2.) THE case of the petitioners briefly stated is as following :

(3.) SHRI G. Rath, learned Senior Counsel for the petitioners by referring to certain documents (which will be dealt with hereinafter) and relying on the decision of the Supreme Court in Commissioner of Sales Taxes, U.P. v. Bakhtawar Lal Kailash Chand Arhti, 1992 (87) STC 196 and decisions of the Patna High Court in D.R. Garg and Company v. The State of Bihar, 1986 (63) S.T.C. 183 and Indian Explosives Limited v. State of Bihar, 1993 (89) S.T.C. 417 contended that the transaction in question is out and out an inter State trade. Shri S. D. Das, learned Standing Counsel for the Department on the other hand submitted that the contract envisaged in the tender call notice did not provide for movement of goods from one State to another. The seller viz. the O.F.D.C. is no way concerned with that the petitioners do with respect of the kendu leaves purchased by them and the movement of kendu leaves to West Bengal has not link with the sale itself. According to him, the sale did not occasion in the movement of goods so as to constitute inter State trade and therefore, it has been rightly assessed with the local sales tax. In support of this, he placed reliance on the decision of the Supreme Court in Commissioner of Sales Tax, U.P. v. Suresh Chand Jain, 1988 (70) S.T.C. 45 and of this Court in Similipahar Forest Development Corporation Ltd: v. State of Orissa, 1995 (96) S.T.D. 627 and State of Orissa v. Vijoylaxmi Timber Depot, 2000 (II) O.L.R, 499: