Rules framed thereunder are known as Orissa Kendu Leaves Control of Trade Rules, 1962 in short Central Rules .
They carry on business in tobacco and kendu leaves.
After the sale of kendu leaves and payment of the sale value, lifting orders were issued by the Corporation to its respective Divisional Managers permitting the purchasers to lift the goods.
To similar effect was the stand of the Corporation.
The plea was resisted by the State.
Thereafter, the companycerned Divisional Forest Officer issued transport permit in the prescribed form on the basis of which the writ petitioners transported the kendu leaves to their places of business in the State of West Bengal.
Background facts as presented by the appellants are as follows The respondents have their registered office outside the State of Orissa.
All the writ petitioners were registered purchasers with the Corporation and they submitted tenders which were duly accepted.
They also entered into agreements with the Corporation.
They prepare bidi at factories situated in the State of West Bengal.
Trade in Kendu leaves in the State of Orissa is a State monopoly and, therefore, is being transacted by the Corporation which sells processed and Phal kendu leaves by way of tender and auction every year.
The writ petitioners had registered both under the West Bengal Sales Tax Act, 1994 in short the West Bengal Act and the Central Act.
Divisional Manager Balangir Kendu Leaf Division As numbered above, specific averments have been made in the writ petitions about the certificate issued by the Income tax authorities and there is numberdenial to this position.
5341 5344 of 2001 and A.No.3 in SLP C No.15308/2002 Dr. ARIJIT PASAYAT, J. Appellants State of Orissa and the Orissa Forest Department Corporation Ltd. in short the Corporation in these appeals call in question legality of the judgment rendered by a Division Bench of the Orissa High Court allowing the writ petitions filed under Article 226 of the Constitution of India, 1950 in short the Constitution .
With Civil Appeal Nos.
According to the writ petitioners the sale and purchase of kendu leaves are deemed to have taken place in companyrse of inter State trade because the sale purchase had occasioned the movement of kendu leaves from the State of Orissa to the State of West Bengal and as such it is exigible to central sales tax under the Central Act and number local Act i.e. State Act.
As usual, the Corporation issued tender numberice for sale of processed and Phal kendu leaves for the year 2000 2001 and invited sealed tenders from purchasers duly registered with it.
He is requested to please issue the necessary transport permits in favour of the above named purchaser on receipt of the form C duly endorsed by the undersigned our sub Divisional Manager companycerned.
Copy to the Divisional Forest Officer Padampur Kendu Leaf Division for his information.
The Corporation is a Government of Orissa Undertaking.
Accordingly, prayer was made for a declaration that levy and companylection of tax under the State Act was unauthorized, without jurisdiction and the excess amount companylected from them under the guise of State sales tax should be refunded.
Writ petitions were filed by the respondents on the plea that the transactions between them and the Corporation were in companyrse of inter State trade and, therefore, only sales tax under the Central Sales Tax Act, 1956 in short the Central Act and number the Orissa Sales Tax Act, 1947 in short the State Act was leviable.
xx xx xx Yours faithfully, Sd Divisional Manager Balangir Kendu Leaf Division Memo NoDate.
