TMI Blog1979 (12) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... and 227 of the Constitution of India the petitioners have challenged the validity of the two orders, referred to above, in annexures 11 and 12. In order to appreciate the points involved for a decision of this Court I am putting in short the facts of the case. 3.. The petitioners happened to be partners in the business of M/s. Maskalaiya Stone Supplying Agencies, which is a partnership concern with their work site at village Maskalaiya in police station Rajmahal, District Santhal Parganas, in the State of Bihar. The firm has been obtaining permits under the Bihar Minor Minerals Concession Rules, 1964, for the quarrying and manufacturing stone boulders/ballasts by exploiting the plots at various sites of Rajmahal in Bihar. The petitioners have been carrying on the business of mining and supplying stone materials in the name and style of the said firm. In response to a tender issued by the Superintending Engineer, Central Irrigation Circle, West Bengal (respondent No. 5), the petitioners submitted tender and finally on acceptance of it, they entered into a contract and took up the work of supplying materials from Rajmahal to the Irrigation Department at Malda in West Bengal (see an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommercial Tax Officer of Malda in West Bengal has any jurisdiction or is within his rights to make an assessment for payment of sales tax under the Bengal Act? 6.. The ordinary simple meaning of "sale" is exchange of anything for some consideration. To put it more clearly, "sale" means with all its grammatical variations any transfer of property in goods for cash or for deferred payments or for consideration and, consequently, "purchase" means acquisition of property in goods sold. So, the moot question, which would decide the controversy is to find out where the sale took place. It is quite well-known that even in case of hire-purchase or in case of any other instalment system of payment, notwithstanding the fact that the seller retains a title to any goods sold as security for payment, the transaction with all its cognate expression will be deemed to be sale. Similarly, it appears clear that the sale of goods in respect of a forward contract, whether the goods under such contract are actually delivered or not shall be deemed to have taken place on the date originally agreed upon for delivery and the goods are carried over and transported for the purpose. Keeping the transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. v. Assistant Commissioner of Commercial Taxes[1970] 26 S.T.C. 354 (S.C.); A.I.R. 1970 S.C. 1281. It has been urged that the transaction of sale is subject to taxation on the completion of sale. The learned counsel has also submitted that a mere contract will not amount to a concluded sale. In the instant case of the petitioners, according to Mr. Dayal, the counsel for West Bengal, the transfer of ownership passed on to the West Bengal Government only when the goods were transported to the site and not earlier and for all practical purposes, it will be deemed to be a sale in the State of West Bengal. In my view the case of Tata Engineering and Locomotive Company[1970] 26 S.T.C. 354 (S.C.); A.I.R. 1970 S.C. 1281. is based altogether on different facts. Tata Locomotives carried on the business of manufacturing trucks and buses and other accessories at Jamshedpur in the State of Bihar. These are sales to different States including the Government of India and other industrial and commercial undertakings and even to individuals. Tata Engineering and Locomotive Company did not maintain any stock-yard in the State of Bihar, but the stock-yards are being maintained in different States ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of goods from one State to another is the result of any incident or a covenant either express or implied, then the sale is an inter-State sale. In the case of Oil India Ltd. v. Superintendent of Taxes[1975] 35 S.T.C. 445 (S.C.); A.I.R. 1975 S.C. 887., crude oil was carried from Assam through the pipe-line specially constructed by the assessee to the refinery at Barauni in Bihar and the oil was pumped and delivered to the Indian Oil Corporation at Barauni. The construction of the pipe-line was undertaken in pursuance of an agreement and naturally the specific purpose was for transporting crude oil. Even though there was no supplemental agreement for the movement of the goods it was held in the said case that the parties envisaged the movement of the crude oil in pursuance of the contract from the State of Assam to the State of Bihar and their Lordships of the Supreme Court said that the Government of Bihar in such a situation had no jurisdiction to tax the sale under the sales tax law of the State of Bihar. 11.. A similar view was held in the case of K.G. Khosla and Co. (P.) Ltd. v. Deputy Commissioner of Commercial Taxes, Madras Division, Madras(1). 12.. Thus, on the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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