Judgment

Bharucha, J.-These appeals by special leave questions the correctness of the judgment and order of a Division Bench of the High Court of Orissa dismissing writ petitions filed by the appellants. Until the Assessment Year 1990-91, the respondents accepted the position that the sales made by the appellants were sales in the course of export and, therefore, exempt from the levy of sales tax. For the Assessment Years 1990-91 and 1991-92 the respondents found that these sales were intra-State sales subject to the levy of tax under the Orissa Sales Tax Act. The writ petitions filed by the appellants thereagainst were dismissed.

2. The appellants are an export oriented unit set up pursuant to the resolution of the Government of India dated 31st December, 1980. That resolution decided to give 100% export oriented units certain conces­sions to enable them to meet the rigours of foreign demands in terms of pricing, quality, precision, etc. According to the resolution, “(a) 100% export oriented unit would imply an industrial unit offering for exports its entire production, excluding permitted levels of rejects”. A unit approved by the Board set up under the resolution was required to u