TMI Blog1955 (7) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... to long before this Sales Tax Act came into force; and the benefit under the contract is not liable to be taxed under the Act; and secondly, that the contract related to earth work and there was no sale of goods as such which alone can render the petitioner liable to assessment under the Orissa Sales Tax Act. The facts disclosed by the petitioner are that he supplied earth for the construction of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has relied on the proviso to section 4(1) of the Orissa Sales Tax Act. That proviso reads as follows: "Provided that the tax shall not be payable on sales involved in the execution of a contract which is shown to the satisfaction of the Collector to have been entered into by the dealer concerned on or before the date so notified." Sub-section (3) of section 1 says that the Act would come into fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determine the date of the contract and not the date of the oral agree- ment under which the contractor performed the contract. As pointed out already payments were made even in March, 1947, for work that had already been completed; and such work could only be done in performance of a contract which may be either oral or written. The written contract which came into existence later is only evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 4(1) it is unnecessary to decide here whether the contract relates to earth work only and as such is liable to be exempted from taxation. We would therefore allow this petition and declare that the peti- tioner is not liable to pay any tax, or penalty, which has been imposed upon him by the Sales Tax Department. The petitioner will also have the costs of this application which we assess at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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