9911796707
TMI Blog1961 (3) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Court was delivered by VENKATARAMA AIYAR, J.-The petitioner is a joint Hindu family firm carrying on business at Berhampur in the State of Orissa, and registered as a dealer under the provisions of the Orissa Sales Tax Act, 1947, hereinafter referred to as the Act. Its business consists in the purchase of castor seeds, turmeric, gingili and other commodities locally, and selling them to dealers outside the State. The Sales Tax Officer, Berhampur, included in the taxable turnover of the petitioner the purchase of goods made by it inside the State but sold, as aforesaid, to dealers outside the State and imposed a tax of Rs. 27,161-13-0 on account of such sales during the sixteen quarters commencing from April 1, 1952, and endi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to a registered dealer who declares that his purchases are for resale in Orissa, then it is excluded from the seller's turnover. If the registered dealer-purchaser sells the goods outside the State in breach of the condition, the purchases by him are liable to be included in his turn- over, and assessed to sales tax. That precisely is what has happened in this case. The sales to the petitioner were not included in the tax- able turnover of the sellers by reason of the registration certificate which the petitioner had obtained on a declaration that the goods were to be resold in Orissa. But in violation of this declaration he sold the goods to dealers outside the State, and so he became liable to be taxed under section 5(2)(a)(ii) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r-State trade, and are not taxable under Article 286(2), but the latter are purely intra-State sales, and a tax imposed thereon does not offend Article 286(2). In support of his contention that the purchases are hit by Article 286(2), the petitioner relies on the decision of this Court in Messrs Mohanlal Hargovind Das v. The State of Madhya Pradesh [1955] 2 S.C.R. 509; 6 S.T.C. 687.. In that case, the petitioners who were registered dealers under the Central Provinces and Berar Sales Tax Act, 1947, were carrying on business in the manufacture and sale of bidis in Madhya Pradesh. For the purpose of their business, they imported processed tobacco from the State of Bombay in large quantities, rolled them into bidis and sold them to dea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision under Article 286(1)(b) prohibiting the imposition of tax on the sale or purchase of goods in the course of import or export, it has been held by this Court that it is only a sale or purchase which occasions the export or import of the goods out of or into the territory of India or a sale in the State by the exporter or importer by transfer of shipping documents, while the goods are beyond the customs barrier, that is within the exemption, and that a sale which precedes such export or import or follows it is not exempted, vide State of Travancore-Cochin v. Shanmugha Vilas Cashew Nut Factory [1954] S.C.R. 53; 4 S.T.C. 205.. On the same principles, a purchase made inside a State, for sale outside the State cannot itself be held ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
