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2021 (11) TMI 170 - ORISSA HIGH COURTTransaction of sale taking place or not - sale of Furnace - machinery or not - Section 12(4) of the Orissa Sales Tax Act, 1947 - Whether furnace being an immovable property the sale price of it is not liable to tax under the Act? - HELD THAT:- In its judgment in CCE, INDORE VERSUS VIRDI BROTHERS & ORS. [2006 (12) TMI 3 - SUPREME COURT] the Supreme Court while dealing with the correctness of the order passed by the CEGAT holding that refrigeration plant/cold storage plant which were fabricated out of duty paid materials would be subject to excise duty, held that these plants are basically systems comprising of various components and are thus in the nature of systems and are not machines as a whole. Therefore, they could not be considered to be excisable goods. The Supreme Court accordingly dismissed the Department’s appeal. The furnace permanently embedded to the earth is an immovable property and is not liable to Orissa Sales Tax as sale of machinery - The furnace in question is not covered under "machinery" under Entry 70 List-C of Schedule of rates and therefore, is not exigible to sales tax. The contract involving receipt of lease rent for leasing of the flameless furnace does not constitute sale or resale of goods within the meaning of sale under Section 2(g) of the OST Act - Leasing of flameless furnace cannot be the subject matter of taxation since it has suffered Orissa Sales Tax at an interior stage in view of Section 8 of the Orissa Sales Tax Act. The impugned orders which hold to the contrary shall stand set aside - revision petitions are disposed of.
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