Judgment

HEGDE, J.:- In this appeal by certificate, three contentions were advanced, namely:

(1) The High Court was not justified in interfering with a proceeding that was pending before the Tax Department, by exercising its extraordinary jurisdiction under Article 226 of the Constitution;

(2) The High Court erred in holding that the transfer of timber from Madhya Pradesh to Uttar Pradesh did not amount to sale; and

(3) The High Court further erred in holding that sales effected by the assessee in Madhya Pradesh were not first sales.

2. The facts of the case lie within a narrow area. The assessee is a registered dealer under the Madhya Pradesh Sales Tax Act. It was a forest contractor which had purchased large quantity of timber from the Forest Department of the Madhya Pradesh in the auctions held by the Department. The assessee was at the first instance assessed by the Assistant Sales Tax Officer, who accepted the return of the assessee and came to the conclusion that the assessee was not liable to be taxed at all. Thereafter, the Sales Tax Officer started assessment proceedings against the assessee. He came to the conclusion that the Sales effected by the assessee in Madhya Pradesh ar