Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2022 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (7) TMI 764 - ORISSA HIGH COURTTaxability - work executed as per the work order issued by MCL - absence of transfer of property in goods - Section 2(g) of the Orissa Sales Tax Act - HELD THAT:- The Court finds that neither in the order of the STO nor in the order of the ACST, is it stated that there was actually any sale of goods or any transfer of property in goods during execution of the work by the Assessee. On the other hand, Mr. Sahoo, learned Senior Counsel has pointed out that in the order of the ACST, it has been noticed that the Petitioner had received Rs.1,05,000/- from local people towards hiring charges of machinery and it is possible that the sales tax collected pertained to that amount. In any event, merely because a sum of Rs.12,672/- has been shown having been collected as sales tax will not automatically imply that the use of the mechanical excavators for digging of overburden and removing it through tippers and transporting to a dump yard, involved any transfer of property in goods from the Petitioner to the MCL. In absence of any specific finding in that regard by the STO, it could not have been simply presumed that 20% of that work is attributable to ‘sale’ of goods thereby limiting the deduction only to 80%. In other words, the disallowance of 20% of the hiring charges has to be based on some material which was available to the STO or to the ACST. The question framed is answered in the affirmative i.e. in favour of the Assessee and against the Department and it is held that the entire sum received by the Petitioner from MCL for performing the work order was not exigible to sales tax and the amount of TDS deducted by the MCL was refundable to the Petitioner - revision petition disposed off.
|