JUDGMENT

Dr. ARIJIT PASAYAT, J.—

1.Appellants-State of Orissa and the Orissa Forest Department Corporation Ltd. (in short the ‘Corporation’) in these appeals call in question legality of the judgment rendered by a Division Bench of the Orissa High Court allowing the writ petitions filed under Article 226 of the Constitution of India, 1950 (in short the ‘Constitution’).

2.Writ petitions were filed by the respondents on the plea that the transactions between them and the Corporation were in course of inter-State trade and, therefore, only sales tax under the Central Sales Tax Act, 1956 (in short the ‘Central Act’) and not the Orissa Sales Tax Act, 1947 (in short the ‘State Act’) was leviable. Accordingly, prayer was made for a declaration that levy and collection of tax under the State Act was unauthorized, without jurisdiction and the excess amount collected from them under the guise of State sales tax should be refunded.

3.Background facts as presented by the appellants are as follows:

The respondents have their registered office outside the State of Orissa. They carry on business in tobacco and kendu leaves. They prepare bidi at factories situated in the State of West Bengal. The Corpo