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TMI Blog1976 (8) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... he judgment of the Court was delivered by RAY, C.J.-The petitioner in this writ petition raises the question that the supplies of crude oil made by the petitioner, the Oil and Natural Gas Commission, referred to as the Commission, to the Indian Oil Corporation Limited referred to as the Corporation are not exigible to sales tax either by the State of Assam or the State of Bihar under the Central Sales Tax Act or the Bihar Sales Tax Act respectively. The petitioner contends that the supplies by the Commission to the Corporation are pursuant to directions/orders of the Central Government, and, therefore, there is no contract of sale. The petitioner in particular contends that the Commission is obliged to supply to the Corporation and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Chairman of the Corporation at New Delhi on August 8, 1968. The representatives of the Corporation, the Commission and Oil India Limited were present. Crude oil supplied both by the Commission and Oil India Limited come through the pipeline belonging to Oil India Limited to refineries at Gauhati and Barauni belonging to the Corporation. The manner of measurement and of payment for crude is ascertained by the Corporation from the Commission and Oil India Limited. At the meeting held on October 18, 1968, the Central Government representatives and the representatives of the petitioner, Oil India Limited and the Corporation were present. It was decided that crude oil which was being delivered to the refineries of the Corporation at Gauhati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adopted in the past for computation of pipeline tariff payable by the Commission should also be adopted for payment of sales tax by the Commission. 'Since for tariff computation all of Commission's crude is deemed notionally to be delivered to Barauni refinery and none to Gauhati refinery, the sales tax liability of the Commission would also accrue on the principle that all of its crude was being sold to Barauni refinery. The Commission is described by the Solicitor-General to be a statutory body which has no option either with regard to the production or supply and the directions and decisions of the Government leave no choice with the Commission in regard to supplies. This court in Salar Jung Sugar Mills Ltd. v. State of Mysore [1972] 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty with which the owner is compelled to part for a price against his will and the effect of the statute in such a case is to say that the absence of the transferor's consent does not matter and the sale is to proceed without it. In truth, transfer is brought into being which ex facie in all its essential characteristics is a transfer of sale. Fifth, delimiting areas for transactions or denoting parties or denoting price for transactions are all within the area of individual freedom of contract with limited choice by reason of ensuring the greatest good for the greatest number of achieving proper supply at standard or fair price to eliminate the evils of hoarding and scarcity on the one hand and ensuring availability on the other. Sixth, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubject to which, and the mode in which, contracts may be entered into by or on behalf of the Commission. The provisions of the Oil and Natural Gas Commission Act show that the Commission is engaged in the business of producing crude oil in Assam and the supply of crude oil. The supply to the Corporation is a sale transaction fulfilling all the ingredients of a sale. The supply of crude oil by the Commission to the Barauni refinery of the Corporation is also a sale in the course of inter-State trade. The movement of crude oil from Assam to Barauni is pursuant to the contract for sale of crude oil. The directions given by the Government are because of the character and constitution of the Commission. Directions and decisions do not detract f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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