TMI Blog1961 (3) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... K. Daphtary, Solicitor-General of India (R. Ganapathy Iyer and T.M. Sen, Advocate, with him), for the respondents. R. Gopalakrishnan, Advocate and S.N. Andley J.B. Dadachanji, Rameshwar Nath and P.L. Vohra, Advocates of M/s. Rajinder Narain and Co., for the petitioners. -------------------------------------------------- The Judgment 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dealer for purposes other than those specified in his certificate of registration the price of goods so utilised shall be included in his taxable turnover. * * *" It will be seen that under this section when a sale takes place, the seller has to include it in his taxable turnover; but when the sale is 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 turnove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te is not relevant, as those sales are distinct and separate from the sales on which the taxes in question have been imposed. The present levy is not on the sales by the petitioner to persons outside the State, but on the purchases by him inside the State. The former sales are in the course of inter-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 un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly if two conditions concur: (1) A sale of goods, and (2) a transport of those goods from one State to another under the contract of sale. Unless both these conditions are satisfied, there can be no sale in the course of inter-State trade." With reference to the analogous provision 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 sal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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