2022 (3) TMI 633 - SCH - VAT and Sales Tax

Non-deletion of Tax free and First Point Tax Paid goods turnover from the taxable turnover - receipts of hire charges recovered from contractors by appellant falls within ambit of deemed sales as contemplated u/s 2(g)(iv) of the Orissa Sales Tax Act or not - receipt of hire charges of machineries from inter-department of the assessee for account purpose is sale to self as contemplated u/s 2(g)(iv) of the Orissa Sales Tax Act or not - HELD THAT - The proceedings should be remitted back to the High Court for disposal afresh. To facilitate this process, the appeals are allowed and the impugned order is set aside. All the tax revisions, namely Tax Revision shall stand restored to the file of the High Court. The appeals are disposed of.

Summary

Issues:

1. Interpretation of tax provisions regarding taxable turnover and deemed sales under the Orissa Sales Tax Act.
2. Justification of the High Court's dismissal of tax revision petitions.
3. Remittance of proceedings back to the High Court for fresh disposal.

Analysis:

1. The Supreme Court addressed the interpretation of tax provisions under the Orissa Sales Tax Act, focusing on the taxable turnover and deemed sales. The questions of law raised by the appellant primarily revolved around the justification of the Tribunal's decisions regarding tax-free turnover, first point tax paid goods turnover, and the applicability of deemed sales to receipts of hire charges. The Court highlighted the specific questions (b), (d), and (e) formulated by the High Court, emphasizing the need for a fresh disposal of the case based on these questions.

2. The Court scrutinized the High Court's judgment, noting that the initial paragraphs extensively detailed the factual background and previous orders leading to the revisions. However, the High Court's decision to dismiss the revisions was supported by brief and cryptic reasons provided in paragraphs 11, 12, and 14 of the judgment. In response to the inadequacy of reasoning and the importance of the unresolved legal questions, the Supreme Court deemed it necessary to remit the proceedings back to the High Court for a thorough and comprehensive reconsideration.

3. Consequently, the Supreme Court allowed the appeals, setting aside the impugned order of the High Court dated 13 February 2019. The Court directed the restoration of all tax revisions to the High Court's file for fresh disposal, specifically focusing on the questions (b), (d), and (e) extracted from the High Court's order. Given that the tax revisions dated back to 2001, the Supreme Court urged the High Court to expedite the disposal process to ensure timely resolution. The appeals were ultimately disposed of in light of the decision to remit the proceedings back to the High Court, with all pending applications being duly disposed of as well.