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2009 (3) TMI 971 - HC - VAT and Sales TaxWhether, in the facts and circumstances of the case, Tribunal is correct to apply the test of business to the transaction falling in clause (ii) of section 2(b) of the Orissa Sales Tax Act, 1947? Held that:- In the present case, manufacturing and selling of iron, steel products, chemical fertilizers, etc., are the main business activities of the petitioner. It is a registered dealer both under the OST and CST Acts and it regularly pays tax on sale of these goods. It is an ongoing big business concern and sporadic/occasional sale of scrap materials and old unserviceable materials is obvious. It cannot be said that such transaction is not in connection with, or incidental or ancillary to the main business in terms of section 2(b)(ii) of the OST Act. Therefore, the sale of scrap materials and old unserviceable materials is liable to tax. Thus answer the question in negative, i.e., in favour of the petitioner-Revenue and against the dealer.
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