Judgement

HIDAYATULLAH, J. : The appellant is a public Limited Company which manufactures the well-known Tata Mercedes-Benz trucks, bus chassis, their spare parts and other accessories at Jamshedpur in the State of Bihar and they are sold to the Government of India, the State Governments State Transport Corporations and others. In the course of its business the appellant Company sells its products, particularly the trucks and bus chassis, to dealers in various parts of India and the dealers resell them to consumers all over India. According to the appellant Company, its sales in the Indian market are of three kinds:

(a) Sales inside Bihar State;

(b) Sales in the course of inter-state trade and commerce; and

(c) Sales effected from their stock-yards located in States other than Bihar. The present appeal concerns sales in the last category and the question arises in the following circumstances.

2. The appellant Company filed returns for the quarter ending on June 30, 1965, under the Bihar Sales Tax Act and Central Sales Tax Act respectively, including in the former sales to consumers in Bihar State and in the latter sales in the course of inter-state trader or commerce, and paid full t