1975 (11) TMI 148

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....'dealer' under the Orissa Sales Tax Act? (2) Whether, on the facts and in the circumstances of the case, the sale of foodgrains by the assessee made to its workmen of its mines amounts to sale within the meaning of section 2(g) of the Orissa Sales Tax Act so as to be included in the assessee's turnover for the purpose of assessment? (3) Whether, on the facts and in the circumstances of the case, occasional disposal of used empty drums, used G.I. sheets, used and unserviceable hose pipes and used and rejected parts of machineries and other scrap materials by the assessee amounts to sale in the course of business so as to attract the provisions of the Orissa Sales Tax Act on the sale proceeds? (4) Whether, on the facts and in the cir....

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....icer for a finding as to whether the entire thing was a building contract or the supplies were separate from the rest and, therefore, liable to tax. In regard to the sale of used materials, the appellate authority was of the view that the same had been rightly taxed. 5.. The assessee's appeal before the Appellate Tribunal failed. Thereupon, the assessee applied for a statement of the case. 6.. Mr. Patnaik appearing for the assessee concedes that so far as the first two questions are concerned, there has already been a determination by this court in a similar case against him in Tata Iron & Steel Co. Ltd. v. State of Orissa[1975] 35 S.T.C. 195. For the reasons indicated in the said decision, we are of the view that the sale of foodgrai....

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....ron scrap, cans, boxes and such other miscellaneous goods, the company was not carrying on business of selling those items of goods. Undoubtedly from the frequency, volume, continuity and regularity of transactions carried on with a profit-motive, an inference that it was intended to carry on business in the commodity may arise. But it does not arise merely because the price received by sale of discarded goods entered the accounts of the trader and may on an overall view have enhanced his total profit, or indirectly reduced the cost of production of goods in the business of selling in which he was engaged. An attempt to realise price by sale of surplus unserviceable or discarded goods does not necessarily lead to an inference that business ....