STATE OF ORISSA vs M/S K.B. SAHA & SONS INDUS.PVT.LTD.

The Supreme Court upheld the Orissa High Court's ruling that the transactions involving the sale of kendu leaves by the Orissa Forest Department Corporation Ltd. were in the course of inter-State trade, thus making them liable to sales tax under the Central Sales Tax Act, 1956, rather than the Orissa Sales Tax Act, 1947. The Court emphasized that the movement of goods from Orissa to West Bengal constituted inter-State trade as per the provisions of the Central Act. Consequently, the Court ruled that the levy of sales tax under the State Act was unauthorized and ordered the refund of excess amounts collected.