1975 (3) TMI 96 - SUPREME COURT

Whether the sales made by the petitioner in pursuance to clause 7 of the second supplemental agreement to Government of India through the agency of Indian Oil Corporation were sales in the course of inter-State trade and were, therefore, liable to sales tax under the Central Sales Tax Act?

Held that:- Appeal partly allowed. The sales in question were sales in the course of inter-State trade and that the Bihar Government had no jurisdiction to tax the sales under the sales tax law of the State. The petitioner is, therefore, entitled to the alternative reliefs prayed for in the writ petitions, namely, that respondents Nos. 4 to 6 in each of the petitions should be enjoined not to impose sales tax under the provisions of the Bihar Sales Tax Act in respect of sales made in pursuance of clause 7 and that they should be directed to refund to the petitioner the sales tax collected from the petitioner by way of sales tax as the various assessment orders made by respondent No. 4 stand quashed. The writ petitions are allowed to the extent indicated and they are dismissed in other respects.