1990 (8) TMI 347 - HC - VAT and Sales Tax

Summary

The High Court of Orissa addressed a reference under the Orissa Sales Tax Act regarding the justification of a dealer paying purchase tax on mahua flowers based on royalty paid to the Forest Department. The court concluded that the royalty paid constituted the purchase price subject to tax, despite doubts on whether the transaction qualified as a purchase. The question was answered in favor of the dealer, with no costs incurred. The judgment was agreed upon by both Justices Mohapatra and Mahapatra. The reference was answered in the affirmative.