ASSOCIATES CEMENT COMPANIES LTD Vs. STATE OF ORISSA

JUDGEMENT

(1.) IN this tax revision case the court has formulated the following question of law for adjudication: Whether, in facts and in the circumstances of the case, the stock of cement said to have been moved from the petitioner's factory to West Bengal can be held to be inter -State sales

(2.) THE facts in nutshell, relevant to the context are as follows: The petitioner in the present case is Associated Cement Companies Ltd., previously known as M/s. IDCOL Cement Ltd. (hereinafter referred to as, 'the company'). It is engaged in the business of manufacturing and sale of cement. The company has its factory in the district of Bargarh in the State of Orissa. The petitioner has a branch office at Kolkata in the State of West Bengal. Besides, the branch office, the petitioner also maintains nine godowns/dumps in West Bengal. The petitioner is registered under the Orissa Sales Tax Act, 1947 (hereinafter referred to as, 'the OST Act') and Central Sales Tax Act, 1956 (hereinafter referred to as, 'the CST Act') in the State of Orissa. In West Bengal, the company is also registered both under the local Sales Tax Act and CST Act. For the purpose of its business, the company appoints stockists in the State of West Bengal. For appointment of stockists, the company has circulated printed form and the persons intending to be appointed as stockists are required to fill up and submit the said printed form to the branch office of the petitioner in West Bengal. In the said format/application form the persons intending to become stockists are required to give various information including their financial position, i.e., how much they can invest and how much cement they require in a month.

(3.) THE stockists appointed by the company in the State of West Bengal as well as other dealers/persons purchase cement from the dumps of branch office of the company at Kolkata as per their need and requirement.