S. CHANDAR Vs. STATE OF ORISSA

JUDGEMENT

(1.) In the present revision petition which arises out of an order dtd. 18/9/2006 passed by the Orissa Sales Tax Tribunal, Cuttack (Tribunal) in SA Nos.2054-2055 of 1992-93 (State of Orissa v. M/s. S. Chander) and S.A. Nos.625-626 of 1992-93 (M/s.S. Chander v. State of Orissa) for the assessment year 1987-88, the following questions of law were framed for consideration by this Court by its order dtd. 4/12/2006:

(2.) At the outset, Mr. Jagabandhu Sahoo, learned Senior Advocate appearing for the Petitioner states that the Petitioner is not pressing Question No.(ii) and is only pressing Question No.(i).

(3.) Relevant to Question (i), the Sales Tax Officer (STO), Sambalpur in the assessment order dtd. 31/1/1990 for the aforementioned year noted the submissions of the Petitioner (dealer) that the goods were delivered at factory site to the buyer who transported the goods (cement) at his own cost. The case of the Petitioner was that it, therefore, was not liable to pay tax on the transportation charges since it had not received any payment for transportation of cement. Nevertheless, the STO concluded that the total cost of the goods including transit and incidental expenditure till the delivery of the goods at the destination point of the purchaser would constitute the actual sale price. It was concluded that the dealer was in fact incurring the transportation charges, but was passing on the same "with a view to avoiding tax".