OIL AND NATURAL GAS COMMISSION versus STATE OF BIHAR AND OTHERS

OIL AND NATURAL GAS COMMISSION versus STATE OF BIHAR AND OTHERS

The supplies of crude oil by the Commission to the Barauni refinery of the Corporation satisfy all ingredients of a sale, notwithstanding that the supply was under government directions; these are sales in the course of inter-state trade, and only the State of Assam is entitled to levy Central Sales Tax. Bihar is not competent to levy state sales tax on these transactions.

Parties
Petitioner: Oil and Natural Gas Commission; Respondent: State of Bihar; Respondent: State of Assam
Jurisdiction
India
Judgment Date
24 August 1976
Procedural Posture
Writ Petition / Supreme Court Original Jurisdiction Final Decision
Outcome
Writ Petition dismissed.
Legal Topics
Central Sales Tax, Inter State Sale, Statutory Contract, Government Direction and Control, Supply of Goods, Petroleum Sector Regulation
Tax Law Administrative Law Commercial Law Central Sales Tax Inter State Sale Statutory Contract Government Direction and Control Supply of Goods +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 2 Authorities cited 4 Party arguments 2
Sign in to unlock

Parties

Oil and Natural Gas Commission

Petitioner

State of Bihar

Respondent

State of Assam

Respondent

Procedural Posture

Writ Petition / Supreme Court Original Jurisdiction Final Decision

Legal Issues

  1. 1 Whether supplies of crude oil by the Commission to the Corporation are sales exigible to sales tax
  2. 2 Whether such sales are inter-state under the Central Sales Tax Act and not liable to state sales tax by Bihar

Ratio Decidendi

The supplies of crude oil by the Commission to the Barauni refinery of the Corporation satisfy all ingredients of a sale, notwithstanding that the supply was under government directions; these are sales in the course of inter-state trade, and only the State of Assam is entitled to levy Central Sales Tax. Bihar is not competent to levy state sales tax on these transactions.

Court Disposition

Writ Petition dismissed.

Orders

  • The writ petition is dismissed.
  • Parties will pay and bear their own costs.