JUDGMENT

Kuldip Singh, J.

1. 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 correct in holding that even sales in course of inter-State trade and commerce, 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 correct?"

The High Court answered the question in the affirmative and in favour of the assessee. These appeals by the State of Orissa are against the judgment of the High Court.

2. 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 goods were however sold in the course of inter-State trade. The Sales Tax Officer came to the conclusion that the declaration furnished by the assessee was violated and, as such,