STATE OF ORISSA Vs. B D PATNAIK

JUDGEMENT

(1.) THIS batch of three reference cases arising out of a consolidated reference made under section 24(1) of the Orissa Sales Tax Act, 1947 (for short, "the Act"), by the Sales Tax Tribunal, Orissa, have been heard together for the sake of convenience to answer the following question of law referred to this Court :

(2.) THE periods involved in these three cases are the assessment years 1972-73, 1973-74 and 1974-75. The facts may be stated in brief : The opposite party, M/s. B. D. Patnaik, is a registered dealer under the Act carrying on business at Keonjhargarh. During the relevant assessment years, the dealer was operating two mines, one at Jaidega and the other at Jharbeda, with head office at Rourkela. The dealer entered into transaction of sale of some mineral ores with M/s. Hindustan Steel Limited, Rourkela. A proceeding under section 12(5) of the Act was initiated against the dealer by the assessing officer, who levied tax of Rs. 24,133.44 for the year 1972-73, Rs. 31,735.35 for 1973-74 and Rs. 26,984.16 for 1974-75. One of the points raised by the dealer was that the amounts realised from the purchasing dealer on account of transport charges and stacking charges did not form a part of the sale price. The dealer failed before the first appellate authority, but before the Tribunal he succeeded on both the points, and the transport charges and stacking charges received by him from the purchaser were directed to be excluded from his taxable turnover. Thereafter, the Revenue applied for making a reference and the reference has been made with respect to only one of the points decided by the Tribunal, namely, as to whether the stacking charges realised by the dealer from the purchaser formed a part of the sale price.

(3.) ON these materials, the Tribunal has recorded a finding of fact that the stacking charges were not charged as a sum for the transfer of the property, but for other services rendered, and, therefore, the stacking charges cannot form a part of the sale price. The Tribunal accordingly directed that the gross turnover should be redetermined by deleting the transport charges and stacking charges for three years in question.