JUDGMENT

R. N. MISRA, J. - The petitioner, Messrs. Straw Products Limited, a company incorporated under the Companies Act of 1956 with its registered office at Jaykaypur in the District of Koraput is engaged in the manufacture of paper and allied products. For the purpose of obtaining pulp for paper-making, the company obtained two leases from the State of Orissa on 17th May, 1956, and 22nd August, 1956, on the basis of royalty. Both the contracts were for a term of 16 years with a stipulation for renewal and in January, 1974, the two leases have been renewed for a further term of 16 years. There is no stipulation for reimbursement of sales tax in the contracts. On 24th February, 1975, the Divisional Forest Officer, Balliguda Division, sent the following letter to the petitioner :

"I am a registered dealer and my registration No. is GA-II-3252. I am assessed to tax on sale of all standing trees which includes bamboos for the years 1969-70 to 1971-72 and the assessments for the period from 1972-73 till to date are pending.

Since, I am liable to pay sales tax to the State, it is incumbent on me to realise sales tax from you.

Your transactions with the undersigned from the year 1969-7