STATE OF ORISSA Vs. ROYAL HALF-TONE COMPANY

JUDGEMENT

(1.) BY order dated 28.8.1975, on an application made by the Commissioner of Sales -Tax under Section 24(2)(b) of the Orissa Sales Tax Act, 1947 (hereinafter referred to as the 'Act'), this Court called upon the Sales Tax Tribunal to state a case and refer the following two questions for opinion of the Court:

(2.) ASSESSEE is M/s. Royal Half -tone Company of Calcutta and the relevant periods are 1962 -63, 1963 -64 and 1964 -65 (financial years) Assessee manufactured and sold printing blocks, coloured covers and printed designs to be used as book covers. During the relevant periods, Assessee supplied these materials to the Orissa Government Press, the Orissa Text Book Press and many other Government Offices as also to private parties. Up to July, 1963, representatives of the Assessee used to visit Cuttack, obtain orders from the customers and used to sell the goods to them in terms of orders and specifications by effecting delivery of the goods to the buyers. From July, 1963, Assessee opened a branch at Cuttack and then started manufacturing of printing blocks at Cuttack itself.

(3.) ASSESSEE 's first appeals were dismissed by the Assistant Commissioner of Sales Tax. On further appeal to the Tribunal, the learned Member found that the goods had moved from Calcutta in West Bengal to Cuttack in Orissa as an incidence of contract of sale and, therefore, the transactions were not liable to tax under the provisions of the State Act as being sales pure and simple inside the State of Orissa. Accordingly he vacated the assessments and with that the penalties were also set aside.