Sale of scrap and unserviceable materials was held outside turnover for sales tax under the Orissa Sales Tax Act.

Sale of scrap, empty drums and other unserviceable materials was held not to amount to the dealer's business for sales tax purposes under the Orissa Sales Tax Act, 1947. The Court applied its earlier view that such transactions are not includible in the dealer's turnover, so the Tribunal's contrary conclusion could not stand. The levy of sales tax on these sales was therefore held unsustainable, and the question was answered in favour of the assessee.

---

---

Issues: Whether the sale of scrap and unserviceable materials by the assessee attracted levy of sales tax under the Orissa Sales Tax Act, 1947.

Analysis: The reference concerned assessment of sales of scrap, empty drums, and other unserviceable materials for the relevant assessment year. The Court followed its earlier view that such transactions do not amount to the business of the dealer and, therefore, are not includible in the dealer's turnover for sales tax assessment. The Tribunal's contrary view could not be sustained in light of that settled position.

Conclusion: The levy of sales tax on the sale of scrap and unserviceable materials was not sustainable, and the question was answered in the negative in favour of the assessee.

---