DEBIJHORA TEA CO LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) In these cases the assessee is an incorporated company, namely, Debijhora Tea Co. Ltd., with its head office located in Jalpaiguri. The business of the assessee is manufacture and export of tea. The assessee owns a tea garden in the district of Purnea. The assessee processed tea leaves into commercial tea in the tea garden and sent the processed tea to its head office at Jalpaiguri. It is alleged on behalf of the assessee that the tea is sold at Calcutta at periodical auctions. For the period of assessment from 1-10-1948, to 31-3-1949, the Sales-tax authorities determined the gross turnover of the assessee to be Rs. 3,10,000/- and the taxable turnover to be Rs. 2,95,680/-. The amount of sales tax assessed was Rs. 9,240/-. For the assessment period from 1-4-1949, to 25-1-1950, the sales-tax authorities determined the gross turnover to be Rs. 4,90,145/- and odd and the taxable turnover to be Rs. 4,68,853/-. The amount of tax assessed for this period was Rs. 10.865/2/-. The petitioner applied to the Board of Revenue against the orders of assessment. It was contended on petitioner's behalf that the Imposition of sales tax was illegal as no portion or the tea was sold within the territorial limits of Bihar. It was also argued that the second proviso to Section 2(g), Bihar Sales Tax Act, was ultra vires. Both these contentions were rejected by the Board of Revenue and the imposition of sales tax upon the petitioner for the two assessment periods was held to be legally valid.

(2.) Before proceeding to consider the questions. Submitted in the statement of the case, it is necessary to set out the necessary statutory provisions. Previous to the amendment made by Bihar Act 6 of 1949, Section 2(g), Bihar Sales Tax Act, read as follows :

(3.) In MJC 82 of 1953 the Board of Revenue has submitted the following Questions of law for the opinion of the High Court.