WALI RAM AGRAWAL AND 3 ORS. Vs. ASSISTANT SUPERINTENDENT OF COMMERCIAL TAXES, CHAIBASA & ORS.

JUDGEMENT

(1.) All these four writ applications were heard together and are being disposed of herewith as the fact and the question of law involved in them are same and similar, namely, as to whether the transactions of sale of wooden beams (for use as railway sleepers) by the petitioners to the Railway Administration can be deemed to have taken place in course of inter -State trade or commerce within the meaning of Sec. 3 of the Central Sales Tax Act or not ? In the first case the period of assessment is 1972 -73 and 1973 -74, in C.W.J.C. Nos. 685 & 686 it is 1973 -74 and in C.W.J.C. 687 it is 1972 -73.

(2.) The Assistant Superintendent of Commercial Taxes, Chaibasa, respondent no. 1, by the impugned assessment orders levied central sales tax on the aforesaid transaction, on the ground that it was sale in course of inter -state sale, and assessed the amounts mentioned in the impugned assessment orders. The petitioners objected to the assessment on the ground that the sales were made from the State of Orissa and hence they were not liable to be assessed over the transactions by the Sales Tax authorities in the State of Bihar. The contention was rejected by the assessing authority on the ground that not only that at the time when the coups were purchased by the petitioners the contract for supply of sleepers to the Railway Administration had been already entered into by the petitioners but the movement of the goods from Bihar to Orissa had also taken place for preparing the sleepers for the convenience of the dealers and, therefore, simply on that account they could not be exempted from the assessment of Central sales tax in the State of Bihar. This order of respondent no. 1 has been affirmed in appeal by the Assistant Commissioner and on revision by the Joint Commissioner of Sales Tax, Jamshedpur Division.

(3.) It is not in dispute that the sleepers were despatched to places outside Bihar under the orders of the Divisional Forest Officer, Saronda and movement of the logs from Bihar to Orissa took place for conversion of the logs into sleepers. I do not find any substance in one of the contentions raised on behalf of the petitioners that by conversion of the logs into sleepers the basic form of the timber was changed.