Judgment Ramaswami, J. 1. In this ease the assessee is a manufacturer of sugar in Bihar, and during the material period despatched large quantities of sugar to different States, including the State of Madras, under the orders of the Sugar Controller. The assessee was ordered to pay sales tax for the quarter ending the 30th September, 1947, on a taxable turnover of Rs. 9,13,244 and odd on account of sale of sugar to customers outside the State of Bihar. An appeal was taken by the assessee to the Deputy Commissioner of Sales Tax, who dismissed the appeal and affirmed the assessment order made by the Superintendent of Sales Tax. The assessee took the matter in revision before the Board of Revenue, which allowed the petition of revision and ordered that the assessee was not liable to pay sales tax on the amount of Rs. 9,13,244 which was the price of sugar despatched to other States, including the State of Madras. 2. Under Sec.25 (3) of the Bihar Sales Tax Act the Board of Revenue has submitted the following question of law for determination by the High Court:- Whether in the facts and circumstances of the case as disclosed by the material on the record, the despatches of sugar outside the State of Bihar are liable to be taxed ? 3. The admitted facts in this case are as follows. The Government of various States used to intimate the Sugar Controller of India from time to time their requirements of sugar, and the sugar factories used to send to the Controller statements of stock of sugar held by them. On consideration of the requisitions received from various States and also taking into account the stock of sugar available in the sugar factories, the Sugar Controller used to make allotments. The allotment order was communicated to the factory owners directing them to supply sugar to the various State Governments in accordance with the despatch instructions from their competent officers. Copies of the allotment orders were simultaneously sent to the State Governments concerned, on receipt of which the competent officers of the State Governments sent to the factory concerned detailed instructions about the destination to which the sugar was to be despatched as well as the quantity of sugar to be despatched to each place. 4. Copies of the allotment orders were simultaneously sent to the State Governments concerned, on receipt of which the competent officers of the State Governments sent to the factory concerned detailed instructions about the destination to which the sugar was to be despatched as well as the quantity of sugar to be despatched to each place. 4. On behalf of the State of Bihar the Government Advocate pointed out that in this case the assessee had admitted in his memorandum of appeal to the Deputy Commissioner of Sales Tax (printed at page 6 of the paper book) that there were three permits issued by the Sugar Controller, namely, permits dated the 30th December, 1946, 22nd April, 1947, and 4th August, 1947, and that as soon as the permits were received by the assessee the amount of sugar covered by them was treated to have been sold and kept in reserve for supply as soon as wagons were available and as soon as despatch instructions were received from persons in whose favour they were issued. The statements of the assessee in the memorandum of appeal are as follows :- 3. For that the above amount represents sale of sugar against permits issued by the Sugar Controller, Government of India, Simla, on 30th December, 1946, 22nd April, 1947, and 4th August, 1947. 5. For that as soon as a permit is received the amount of sugar covered therein is treated to have been sold and kept in reserve for supply as soon as wagon is available and despatching instructions are received from persons in whose favour it is issued. 6. For that the appellant has actually in the returns submitted to the Chief Controller of Prices, Bihar, shown the amount of sugar to have been sold during the month the permit was received. 7. The question of law involved in this case is exactly similar to that involved in Miscellaneous Judicial Case No. 5 of 1956, and for the reasons elaborately given in that case I hold that, in the circumstances of the case, the despatches of sugar made by the assessee to various States outside the State of Bihar are liable to be taxed under the Bihar Sales Tax Act. I would accordingly answer the question of law referred by the Board of Revenue in favour of the State of Bihar and against the assessee. I would accordingly answer the question of law referred by the Board of Revenue in favour of the State of Bihar and against the assessee. The assessee must pay the costs of this reference. Hearing fee Rs. 250. Kanhaiya Singh, J. 8 I agree.