JODA EAST IRON MINES Vs. STATE OF ORISSA

JUDGEMENT

(1.) AT the instance of the assessee, four questions have been referred for opinion of the court by the Member, Additional Sales Tax Tribunal :

(2.) THE assessee is a mine-owner carrying on mining operation in the district of Keonjhar. It supplied cement and steel to contractors and claimed that these were in connection with the assessee's own constructions. It also supplied rice and wheat to its workmen after procuring the same from Government sources. The assessee disposed of empty drums, used G. I. sheets and unserviceable hose pipes as also scrap materials during the year 1968-69. In respect of the disposal of the scrap materials, the assessee collected sales tax and deposited the same. According to the assessee, there was no liability under the Orissa Sales Tax Act (hereinafter referred to as the "act") in respect of the aforesaid transactions.

(3.) THE assessee appealed to the Appellate Assistant Commissioner. The appellate authority came to hold that there was liability for payment of tax in respect of the sales of rice and wheat. In regard to the supplies of cement and steel, the appellate authority was of the view that the matter should be remanded to the Sales Tax Officer for a finding as to whether the entire thing was a building contract or the supplies were separate from the rest and, therefore, liable to tax. In regard to the sale of used materials, the appellate authority was of the view that the same had been rightly taxed.