1975 (11) TMI 148 - HC - VAT and Sales Tax

Summary

Issues:
1. Tax liability on the sale of foodgrains supplied to workmen under an agreement.
2. Taxability of the sale of foodgrains to workmen under the Orissa Sales Tax Act.
3. Tax liability on the disposal of various materials and scrap.
4. Taxability of the supply of cement and steel to contractors for construction.

Detailed Analysis:

Issue 1: The court was asked to determine if the sale of foodgrains, compulsorily supplied to the workmen without profit under an agreement, should be considered as part of the assessee's turnover under the Orissa Sales Tax Act. The court referred to a previous decision and held that the sale of foodgrains to workmen is liable to tax under the Act.

Issue 2: The court examined whether the sale of foodgrains to workmen constituted a sale within the meaning of the Orissa Sales Tax Act. It was established that the sale of foodgrains to workmen is indeed liable to tax under the Act based on a previous ruling in a similar case.

Issue 3: The court considered the tax liability on the disposal of used empty drums, G.I. sheets, hose pipes, and scrap materials by the assessee. The court relied on a Supreme Court decision to determine that the assessee, engaged in mining business, cannot be considered a dealer for the disposal of these commodities. The court concluded that the turnover from such disposals was not subject to sales tax as it was not in the course of business.

Issue 4: The court addressed the taxability of the supply of cement and steel to contractors for construction. The appellate authority had remanded the matter for further investigation to determine if the supplies were part of a building contract or separate transactions. The court declined to answer this question as it was pending investigation.

In conclusion, the court held that the sale of foodgrains to workmen was taxable, while the turnover from the disposal of various materials by the assessee was not subject to sales tax. The issue regarding the supply of cement and steel to contractors was left pending for further investigation. The judgment was delivered by Justices Misra R.N. and Panda K.B. with Justice Panda concurring.