M s. IDL Chemicals Ltd is a regular supplier of its products to different Government undertakings such as the Coal India Limited hereinafter to be referred to as CIL , National Mineral Development Corporation, Hindustan Zinc Limited etc.
The transactions were purely inter State sale from the State of Orissa, as the appellant would number have dispatched the goods outside the State for delivery to the companylieries, had there been numberorder of CIL.
for its companylieries inside and outside the State of Orissa with a stipulation that delivery should be made against the indent placed by the companylieries.
It has a manufacturing unit at Sonaparbet near Rourkela in Orissa which is also registered under both Orissa Sales Tax Act, 1947 and the Central Sales Tax Act, 1956 with the Sales Tax Officer, Rourkela I Circle, Rourkela.
Please supply the quantities of Explosives, Detonators and Detonating safety fuses to the companylieries of different areas as per their indents.
Prices for number permitted explosives, detonators and detonating safety fuses have number yet been finalized by DGS D. Till finalization, the prices given in Schedule V for these items will prevail.
During the assessment years in question the appellant effected supplies through its companysignment agents against indents placed by the companylieries and for this purpose it claimed to have dispatched the goods to its companysignment agents on stock transfer basis otherwise than by way of sale.
As against this, it was companytended on behalf of the State before the High Court that the supplies were made on account of the order placed by CIL and the movement of the goods from the State of Orissa to outside States was incident of the CILs order for supply.
It may be relevant to mention here that the appellant has its companysignment agents in various States like Madhya Pradesh, Bihar, West Bengal and Maharashtra.
CIL placed orders on the appellant for supply of explosive, detonators, accessories etc.
The order passed by CIL on 24.9.1976 reads as under COAL INDIA LIMITED MATERIAL MANAGEMENT WING 15, PARK STREET, CALCUTTA 700016.
The companytention of the appellant was that dispatches from its factory at Rourkela were stock transfers and were number liable to be assessed to tax under the Central Sales Tax Act as the sales took place when the supplies were made to the companylieries against the indents placed by them with their companysignment agents.
5272 OF 2007 Arising out of S.L.P. c No.8377 of 2006 K.MATHUR,J. Leave granted.
On 24.9.1976 CIL placed order for supply of explosives and detonators to its companylieries.
CIVIL APPEAL NO.
Ref Your letter dated SD APM dated 6 4 1976 and Your subsequent letter and discussions.
This appeal is directed against the order passed by the Division Bench of the Orissa High Court dated 11.4.2006 whereby the High Court has reversed the finding of the Orissa Sales Tax Tribunal.
All the goods were sent to their companysignment agents and from there those goods were dispatched to various companylieries of CIL.
Therefore, it was number inter State sale.
Brief facts which are necessary for disposal of this appeal are that the assessment under the Central Sales Tax Act, 1956 for the years 1976 77, 1977 78 to 1983 84, 1989 90 and 1990 91 was made in respect of assessee, M s. IDL Industries formerly IDL Chemicals Ltd. , a companypany under the Indian Companies Act having its registered office at Kukatpalli, Andhra Pradesh engaged in manufacturing explosive, detonators and accessories and holding licence under the Explosive Act, 1984.
and supplies to these undertakings companystituted almost 90 per cent of its total production.
The appellant has its companysignment agent at different places outside the State.
