CHAKOO BHAI GHELABHAI Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE petitioner is a firm dealing in biri leaves with its headquarters in Bagbahara in Madhya Pradesh. During the years 1948 to 1951 he was engaged in collecting biri leaves from the forest areas of Borasambar Zamindari in Sambalpur district, and was carrying on the business of collecting and storing them in godowns situated at various centres within the State of Orissa. These leaves were stored and made up into bundles which were then despatched to various destinations outside the State of Orissa. The petitioner has been assessed to sales tax and, in addition, a penalty has been imposed upon him for not getting himself registered under the provisions of the Orissa Sales Tax Act. He has, therefore, come up to this Court and prays for a writ directing the Sales Tax Authorities to withdraw the demand for payment of taxes and to rescind the orders passed by them. A number of contentions have been raised by learned counsel for the petitioner. It is urged, firstly, that the petitioner is not a "dealer" as defined in the Orissa Sales Tax Act, that he had no "place of business" in Orissa, that he was merely sending the goods from Orissa to places outside the State and consequently the Orissa Sales Tax Authorities had no jurisdiction to assess him to sales tax. Secondly, he complains that the opposite parties realised a sum of Rs. 1,200 as court-fees under rule 59 of the Orissa Sales Tax Rules and that the levy of court-fees on his memorandum of appeal and revision petitions is ultra vires. Finally, he contends that the opposite parties had no jurisdiction to make twelve separate assessments under section 12(5) after service of a single notice in Form VI.

(2.) THE Sales Tax Officer, Patna Circle, issued a notice on 21st July, 1950, under sections 11(1), 12(5) and 12(7) of the Orissa Sales Tax Act in Form VI as follows :-

(3.) IN this Court the petitioner has filed an affidavit stating the nature of the transactions he is carrying on which shows that biri leaves are collected in the forest areas of Orissa and prepared into bundles at Phandis (centres). Thereafter they are sent to Lakhna, Nawapara, Khariar Road, etc., where the petitioner maintains storing certres. At these centers the leaves are made into bigger bundles and filled into bags, whereafter they are despatched by rail to different destinations. Owing to restrictions on railway booking the consignments were sometimes booked in the name of petitioner's firm and sometimes in the names of the employees of the firm and sometimes even in fictitious names with a view to facilitate the procurement of wagons. The railway receipts were sent to the petitioner's headquarter office at Bagbahar where negotiations for the sales were carried on, and the contract of sale was made at the destination. It is asserted that there was no contract of sale entered into with any buyer when the goods were within the borders of Orissa. The affidavit states that :-