The High Court answered the question in the affirmative and in favour of the assessee.
Against the assessment made, the respondent preferred appeals under the Act before the Assistant Commissioner of Sales Tax which were dismissed.
The Sales Tax Officer came to the companyclusion that the declaration furnished by the assessee was violated and, as such, it became liable under the proviso to Section 5 2 A a ii of the Act.
The goods were however sold in the companyrse of inter State trade.
These appeals by the State of Orissa are against the judgment of the High Court.
The assessee thereafter preferred appeals before the Sales Tax Tribunal, Orissa.
The Tribunal by its order dated 2 3 1973 annulled the assessment and directed the refund of tax and penalty, if paid.
The respondent assessee is a registered dealer under the Orissa Sales Tax Act, 1947, the Act .
The assessee purchased certain goods from a registered dealer on the basis of declaration furnished by it for resale of the purchased goods in the State of Orissa.
The Judgment of the Court was delivered by KULDIP SINGH, J. The Sales Tax Tribunal, Orissa the Tribunal stated a case and referred the following question for the opinion of the High Court Whether on the facts and in the circumstances of the case, the Member Sales Tax Tribunal is companyrect in holding that even sales in companyrse of inter State trade and companymerce, can be sale inside the State if the goods are inside the State of Orissa, and whether his interpretation of the definition of sale as given in Section 2 g of the Orissa Sales Tax Act, 1947 and the Explanation attached to the definition sale is companyrect?
