STATE OF ORISSA Vs. PUSHRAJ BIJAYAKUMAR

JUDGEMENT

(1.) AT the instance of the State, the Member, Additional Sales Tax Tribunal, has stated this case and referred the following two questions for opinion of this court :

(2.) THE short facts are these : The assessee, a firm, is a registered dealer carrying on business within the town of Cuttack and within the jurisdiction of the Sales Tax Officer, Cuttack-I, East Circle. For the accounting period 1970-71, the assessee did not include in its return of gross turnover and taxable turnover, octroi to the tune of Rs. 16,542. 72, which it had paid on the goods at the point of acquisition by it and which it had collected at the point of sale effected by it. Before the assessing officer, it took the plea that since octroi had not been included in the "sale price" and had been charged separately, there was no liability to pay sales tax on octroi. The contention was negatived and the tax was demanded on the amount of octroi paid by the assessee and recovered at the point of sale from the purchasers. In first appeal, the assessee's contention failed, but the assessee succeeded in persuading the Member, Additional Sales Tax Tribunal, to uphold the claim of deduction. Thereupon, the State of Orissa has asked for the statement of the case.

(3.) THE two questions referred are indeed one and the question is, whether octroi when separately charged by the dealer would be a part of "sale price". Our answer, for the reasons indicated, is against the assessee, i. e. , octroi would not be exempted from taxation under the Orissa Sales Tax Act merely because it has been separately charged at the point of sale by the dealer. We make no order for costs. Reference answered accordingly.