Judgment

SHAH, J. : The question which falls to be determined in these appeals is

"whether the appellant Company is liable to pay sales-tax assessed under the Hyderabad General Sales Tax Act, 1950 on the price of coal supplied to allottees outside the taxing State pursuant to directions of the Coal Commissioner issued under the Colliery Control Order, 1945".

The Company which has its registered office at Hyderabad in the former Part B State of Hyderabad, and now in the State of Andhra Pradesh, carried on the business of mining coal from its collieries and supplying it to consumers in the outside the State of Hyderabad.

2. These appeals relate to three financial years 1954-55,1955-56 and 1956-57, during which coal was a controlled commodity and its disposal and use could be made only under orders issued by the appropriate anthority under the Colliery Control Order, 1945. The Company claimed that Rs. 175,67,286-1-2 in the year 1954-55 Rs. 1. 17,39,636-11-8 in the year 1955-56, and Rs. 1,55,18,937-6-5 in the year 1956-57were not liable to be included in the taxable turnover for levying sales tax under the Hyderabad General Sales Tax Act, 1950 because the State Legislature which enacted