TMI Blog2000 (8) TMI 1090X X X X Extracts X X X X X X X X Extracts X X X X ..... transport carriers, they were done in course of inter-State trade or commerce. (iii) The opposite party furnished the xerox copy of the sale bill by way of illustration issued by its firm at Berhampur showing collection of Orissa sales tax, copy of forest permit issued by the Forest Department in favour of Andhra dealer, copy of assessment order showing inclusion of the concerned sale in its turnover and payment of Orissa sales tax and copies of Orissa and Andhra way bills showing the Andhra dealer as both consignee and consignor. On the basis of the above findings, the Assistant Commissioner held that there was no movement of the goods as a result of sale by the opposite party to outside the State. As such, these transactions could not be held to be sales to have taken place in course of interState trade attracting the provisions of the Central Sales Tax Act, 1956. Accordingly, he allowed the appeal filed by the opposite party and annulled the assessment of tax. 4.. Against the order of the Assistant Commissioner, the State of Orissa filed second appeal before the Tribunal which held that in absence of any material available on record and in absence of any agreement, either ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the movement of goods commences and terminates in the same State it shall not be deemed to be a movement of goods from one State to another by reason merely of the fact that in the course of such movement the goods pass through the territory of any other State." 7.. The present is a case where there is no transfer of documents of title, as provided by section 3(b). Therefore, it is to be examined whether the sales effected by the opposite party shall be deemed to take place in course of inter-State trade and commerce merely because such sales were effected to purchasers outside the State. 8.. What is an inter-State sale? While considering the Explanation (which now stands deleted) to article 286 of the Constitution of India, Venkatarama Ayyar, J. of the Supreme Court in his separate opinion in Bengal Immunity Company Limited v. State of Bihar [1955] 6 STC 446 at page 583 stated as follows: "A sale could be said to be in the course of inter-State trade only 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State of U.P. and the purchaser subsequently transported those goods outside the State. In the premises, the Allahabad High Court observed: ".....the real test for determining when a sale occasions the movement of goods contemplated by clause (a) of section 3 of the Central Sales Tax Act, 1956, is that the movement of goods should be as a result of an integral part of the contract of sale that the goods should cross the border from one State to another; it is not enough that the buyer takes delivery of the goods from the seller for the purposes of despatching them to another State, nor is it enough that the seller pursuant to the instructions of the buyer despatches the goods across the border to another State. The contract of sale must itself provide as an integral part of it that the goods shall be transported from one State to another." The scope of inter-State sale again came up for consideration before the Supreme Court in Balabhagas Hulaschand v. State of Orissa [1976] 37 STC 207. The Supreme Court after referring to the opinion of Venkatarama Ayyar, J., in Bengal Immunity Company Limited v. State of Bihar [1955] 6 STC 446 held as follows: "That the following conditions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Orissa, it cannot be said that the transactions were inter-State sales when admittedly the other conditions indicated in section 3 of the Central Sales Tax Act, 1956 are not satisfied. 10.. For the foregoing reasons, we have no hesitation to hold that the conclusions arrived at by the Assistant Commissioner in the first appeal and the Tribunal in the second appeal are in accordance with law. The points of law posed in this application for directing the Tribunal to make a reference have been set at rest by different High Courts as well as by the Supreme Court, referred to above. As such, the questions have become academic. 11.. In the result, the reference application is rejected. Ch. P.K. MISRA, J.-I agree. Application dismissed. In this application the applicant has expressed his grievance on not getting the refund that is due to him after the order imposing penalty on him was set aside in revision. The order in revision was passed on June 1, 2000 and the applicant has not received that refund of Rs. 2 lakhs till date. The learned advocate appearing for the applicant prays for immediate refund of the amount as well as for payment of interest for the period for which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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