Situs of sale determines sales tax liability where fish bought in Orissa were completed and sold in Calcutta.

Sales tax under the Orissa Sales Tax Act, 1947 did not apply where fish purchased in Orissa was delivered and sold in Calcutta, because the sales were completed at the place of delivery and not in Orissa. Mere purchase of goods in Orissa did not make the seller liable to tax there. An admission concerning liability from 1 April 1949 related only to turnover threshold and did not affect the situs of sale. The conclusion that the exported fish was not sold in Orissa was therefore correct, and no sales tax was payable for the relevant quarters.

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Issues: Whether the sales of fish exported to Calcutta were sales in Orissa so as to attract tax under the Orissa Sales Tax Act, 1947.

Analysis: The assessing authorities found that the respondent purchased fish in Orissa and sent it to Calcutta, where the goods were taken delivery of and sold there. Those findings showed that the sales of the exported fish were completed in Calcutta and not in Orissa. Mere purchase of fish in Orissa did not make the respondent liable to sales tax as a seller in Orissa. The admission relating to liability from 1 April 1949 concerned only the turnover threshold and did not determine the situs of the sales. The conclusion of the High Court that the exported fish was not sold in Orissa was therefore correct.

Conclusion: The respondent was not liable to sales tax for the exported fish for any of the four quarters under the Orissa Sales Tax Act, 1947.

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