1 Annexure K .
The petitioner companypany has been filing regular sales tax returns before the Bihar Sales tax authorities under the Bihar Sales Tax Act and was being assessed under that Act for the supply of crude oil to the refinery at Barauni treating the supply as intrastate sales.
4,47,892.10 Annexure J .
In these writ petitions the petitioner prays for quashing Annexures J and K and for a mandamus directing respondents I to 3 number to levy sales tax under the Central Sales Tax Act on the sale of crude oil supplied by the petitioner to the refinery at Barauni.
I negatived the companytention raised by the petitioner and held that by supplying crude oil to the refinery at Barauni the petitioner effected sales of oil to the Indian Oil Company and that they were sales in the companyrse of inter State trade and assessed the petitioner company to pay a tax of Rs.
By the assessment order dated 31 3 1966, respondent No.
49,26,813.06 to the refinery at Barauni and the same was subjected to sales tax under the Bihar Sales Tax Act.
12,23,072.90 by respondent No.
In the year 1966, sales tax authorities in Assam issued numberice to the petitioner stating that Sales Tax was payable on the supply of crude oil to the refinery at Barauni under the Central Sales Tax Act as according to them the sales were in the companyrse of inter state trade.
Mukherjee and S. N. Choudhury, for the Respondents 1 3.
N. Sinha, Solicitor General of India, K. K. Jain, Bishaumber Lal and S. K. Gupta, for the Petitioner.
At Barauni Refinery the crude oil which flows through the pipes from the oil fields of Assam is pumped into the Indian Oil Corporations tanks and thereafter it is measured.
By a second supplemental agreement dated 27 7 1961 executed between the Government of India, Burmah Oil Company Ltd. and Assam Oil Company Ltd. and the petitioner, certain provision, , of the promotion agreement dated 14 1 1958 were modified.
Petition Under Article 32 of the Constitution.
After the measurements are agreed to by both the parties, namely, the petitioner and the Indian Oil Corporation, the crude oil is taken delivery of by the Indian Oil Corporation on behalf of the Government of India.
641 642 of 1970.
The petitioner companytended that sales were intrastate and number subject to tax under the Central Sales Tax Act.
ORIGINAL APPELLATE JURISDICTION Writ Petitions Nos.
4 on the sales of crude oil made by the petitioner company to the refinery at Barauni and A writ, order or direction in the nature of a mandamus directing the respondents 4 to 6 to refund the various amounts companylected as sales tax from the petitioner companypany.
The Judgment of the Court was delivered by MATHEW, J. An agreement dated 14 1 1958 was executed by and between the Government of India, the Burmah Oil Company Ltd. and the Assam Oil Company Ltd. for the promotion of a new companypany inter alia with the object of obtaining mining lease for the production of petroleum and crude oil.
The petitioner in pursuance to the provisions of clause 7 supplied crude oil to Barauni and Nunmati Refineries of Indian Oil Corporation previously Indian Oil Refineries Ltd. and to Digboi Refinery of Assam Oil Company Ltd. through pipe lines companystructed and owned by the petitioner companypany .
Clause 7 of the second supplemental agreement reads as follows All crude oil produced by Oil India excluding Assam Oil Companys entitlement in respect of Oil Indias existing areas under clause 20 of the Promotion Agreement will subject as hereinafter provided be sold to and purchased by the Government of India PROVIDED that after meeting as a first call on such oil the joint annual requirements upto 2 3/4 million tons of Indian Refineries Limiteds Barauni and Nunmati Refineries Assam Oil Companys Digboi Refinery shall have the next call thereon up to a maximum of 435,000 tons per annum to the extent that it cannot be economically met from Assam Oil Companys leased areas.
the issue of a writ, order or direction in the nature of mandamus directing respondents 4, 5 and 6 number to levy tax under the Bihar Sales Tax Act on the sales of crude oil made by the petitioner to the refinery at Barauni A writ, order or direction in the nature of certiorari quashing the various assessment orders passed by respondent No.
M. Singhvi and U. P. Singh, for Respondents No.
By an adoption agreement dated 14 3 1959, the petitioner adopted the promotion agreement of 1958 as modified by the said supplemental agreement.
The petitioner companypany was incorporated in accordance with the promotion agreement as modified by the aforesaid supplemental agreement.
The Barauni Refinery is situated in Bihar while the other two refineries are situated in the State of Assam.
The promotion agreement was later on modified by a supplemental agreement dated 15 2 1959.
The petitioner has its head office in the State of Assam and is engaged in the business of prospecting petroleum and also producing and transporting crude oil from the State of Assam pursuant to the prospecting licence and raining lease granted by the State of Assam.
In the alternative, the petitioner prays for 1.
For the period ending 31 September 1964, the petitioner companypany sold crude oil worth Rs.
By another order dated 31 3 1966, the petitioner was assessed to sales tax under Central Sales Tax Act to Rs.
