Summarize the following court judgment. 12 of 1959. Petition under article 32 'of the Constitution of India for enforcement of fundamental rights. R.Gopalakrishnan	 section N. Andley	 J. B. Dadachanji	 Rameshwar Nath and P. L. Vohra	 for the petitioners. C.K. Daphtary	 Solicitor General of India	 B. Ganapathy Iyer and T. M. Sen	 for the respondents. March 14. The Judgment of the Court was delivered by VENKATARAMA AIYAR	 J. The petitioner is a joint Hindu family firm carrying on business at Berhampur in the State of Orissa	 and registered as a dealer under the provisions of the Orissa Sales Tax Act	 1947	 hereinafter referred to as the Act. Its business consists in the purchase of castor seeds	 turmeric	 gingili and other commodities locally	 and selling them to demlers outside the State. The Sales Tax Officer	 Berhampur	 included in the taxable turnover of the petitioner the purchase of goods made by it inside the State but sold	 as aforesaid	 to dealers outside the State and imposed a tax of Rs. 27	161 13 0 on account of such sales during the sixteen quarters commencing from April 1	 1952	 and ending with March 31	 1956. In the present application filed under article 32	 the petitioner challenges the validity of the tax on the ground that the purchases in question were made in the course of inter State trade	 and that a tax thereon was in contravention of article 286(2) The impugned tax has be en levied under section 5 of the Act	 which	 omitting what is not relevant	 runs as follows: 5. (1) The tax payable by a dealer under this 316 Act shall be levied at the rate of one quarter of an anna in the rupee on his taxable turnover: . . . . . . (2) In	 this Act the expression "taxable turnover" means that part of a dealer 's gross turnover during any period which remains after deducting there from: (a) his turnover during that period on . . . . . . (ii) sales to a registered dealer of goods specified in the purchasing dealer 's certificate of registration as being intended for resale by him in Orissa or for use by him in the execution of any contract in Orissa	 and on sales to a registered dealer of contai ners or other materials for the packing of such goods: Provided that when such goods are used by the registered dealer for purposes other than those specified in his certificate of registration the price of goods so utilised shall be included in his taxable turnover. It will be seen that under this section when a sale takes place	 the seller has to include it in his taxable turnover; but when the sale is to a registered dealer who declares that his purchases are for resale in Orissa	 then it is excluded from the seller 's turn. If the registered dealer purchaser sells the goods outside the State in breach of the condition	 the purchases by him are liable to be included in his turnover	 and assessed to sales tax. That precisely is what has happened in this case. The sales to the petitioner were not included in the taxable turnover of the sellers by reason of the registration certificate which the petitioner had obtained on a declaration that the goods were to be resold in 'Orissa. But in violation of this declaration he sold the goods to dealers outside the State	 and so he became liable to be taxed under section 5(2)(a)(ii) of the Act. The contention of the petitioner is that these purchases were made in the course of inter State trade	 and that the imposition of sales tax thereon is	 in 317 consequence	 ultra vires The provision applicable is article 286(2)	 as it stood prior to the sixth amendment	 and it ran as follows: "Except in so far as	 Parliament may by law otherwise provide	 no law of a State shall impose	 or authorise the imposition of	 a tax on the sale or purchase of any goods where such sale or purchase takes place in the course of inter State trade or commerce. " The argument on behalf of the petitioner is that as the goods were purchased for the purpose of being sold to dealers outside the State	 and they were in fact so sold	 the purchases were in the course of inter State trade	 and the levy of tax thereon was within the prohibition enacted by article 286(2). We do not agree with this contention. The transactions of sales which have been taxed were wholly inside the State of Orissa. They were sales by persons in the State of Orissa to persons within the State of Orissa	 of goods which were in Orissa. The fact that the purchaser sold those very goods to dealers outside the State is not relevant	 as those sales are distinct and separate from the sales on which the taxes in question have been imposed. The present levy is not on the sales by the petitioner to persons outside the State	 but on the purchases by him inside the State. The former sales are in the course of inter State trade	 and are not taxable under article 286(2)	 but the latter are purely intrastate sales	 and a tax imposed thereon does not offend article 286(2). In support of his	 contention that the purchases are hit by Art 286(2)	 the petitioner relies on the	 decision of this Court in Messrs. Mohanlal Hargovind Das V. The State of Madhya Pradesh (1). In that case	 the petitioners who were registered dealers under the Central Provinces and Berar Sales Tax Act	 1947	 were carrying on business in the manufacture and sale of bidis in Madhya Pradesh. For the purpose of their business	 they imported processed tobaco from the State of Bombay in large quantities	 rolled them into bidis and sold them to dealers in other States. (1) ; 318 The sales tax authorities imposed a tax on the purchases made by them	 on the ground that they had	 in breach of the declaration in the registration certificate	 sold them to merchants outside Madhya Pradesh. The contention of the petitioners was that the purchases by them were in the course of inter State trade	 and that the imposition of tax thereon was therefore repugnant to article 286(2). It was this contention that was accepted by this Court. It will be noticed that the in this case the assessment of sales tax was on very purchases from dealers in Bombay	 under which the goods were transported from the State of Bombay to Madhya Pradesh. In the present case	 the purchases which are sought to be assessed involved no movement of the goods outside the State of Orissa. In order that a sale or purchase might be inter State	 it is essential that there must be transport of goods from one State to another under the contract of sale or purchase. In the Bengal Immunity Company Limited vs The State of Bihar (1) occur the following observations which are apposite: "A sale could be said to be in the course of interState trade only if two conditions concur: (1) A sale of goods and (2) a transport of those goods from one State to another under the contract of sale. Unless both those conditions are satisfied	 there can be no sale in the course of interstate trade. " With reference to the analogous provision under article 286(1)(b) prohibiting the imposition of tax on the sale or purchase of goods in the course of import or export	 it has been field by this Court that it is only a sale or purchase which occasions the export or import of the goods out of or into the territory of India or a sale in the State by the exporter or importer by transfer of shipping documonts	 while the	 goods are beyond the customs barrier	 that is within the exemption	 and that a sale which precedes such export or import or follows it is not exempted	 vide State of Travancore. Cochin vs Shannugha Vilas Cashew Nut Factory (2). On the same principles	 a purchase	 made inside a State	 for sale outside the State cannot itself be held (1) 784 785. (2) ; 319 to be in the course of inter State trade	 and the imposition of a tax thereon is not repugnant to article 286(2) of the Constitution. In the result this petition is dismissed with costs. Petition dismissed.

The petitioner who was a	 registered dealer under the Orissa Sales Tax Act	 1947	 was carrying on the business of purchasing and reselling castor seeds	 etc.	 in the State of Orissa. Under a declaration given by him for the purpose of obtaining his registration certificate the goods purchased by him in Orissa were to be resold in that State. He purchased certain commodities inside the State but in contravention of his declaration sold	 the goods to dealers outside the State. The Sales Tax Officer included in the taxable turnover of the petitioner the purchase made by him inside the State in accordance with section 5(2)(a)(II) of the Act. The contention of the petitioner was that the purchase was in course of inter State trade and was exempted under article 286(2) of the Constitution of India. Held	 that the transaction of sale which has been taxed was wholly inside the State of Orissa and was distinct and sepa rate from the sale made by the purchaser to dealers outside the State. The former transaction was taxable under section 5(2)(a)(II) of the Act while the latter was exempted under article 286(2) of the Constitution. Messrs. Mohanlal Hargovind Das vs The State of Madhya Pradesh	 ; 	 distinguished. In order that a sale or purchase might be inter State	 it is essential that there must be transport of goods from one State 315 to another under the contract of sale or purchase. A purchase made inside a State	 for sale outside the State cannot itself be held to be in the course of inter State trade and the imposition of tax thereon is not repugnant to article 286(2) of the Constitution. Bengal Immunity Company Limited vs The State of Bihar	 and State of Travancore Cochin vs Shanmugha Vilas Cashew Nut Factory; 	 	 followed.