TaxTMI 
TaxTMI 
TaxTMI 
2021 (4) TMI 1215
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....) Whether in the facts and circumstances of the case the Orissa Sales Tax Tribunal is legally correct in holding that the turnover amounting to Rs. 19,46,198.04 relating to conversion of corrugated box is in the nature of works Contract and liable to Sales Tax @ 8% and whether such a conclusion arrived at by the Tribunal does not run contrary to the law laid down by the Hon'ble Supreme Court in case of W.P.(C) No.183 of 2003 - Bharat Sanchar Nigam Ltd. vs. Union of India and Others ? (B) Whether the Tribunal is legally correct in upholding addition of Rs. 1,08,992.00 made only on estimation without having any rational nexus with materials on record ?" 3. The said revision petition arose out of the order dated 21st September, 2005 p....
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....Ltd. (IDL) and the Petitioner at which IDL placed orders on the Petitioner for the supply of corrugated paperboard boxes as per the specification and size provided by IDL. The relevant clause of the minutes of the meeting are Clause-A which notes the agreement regarding the size of paper and board that was to be supplied by IDL to the Petitioner for conversion into corrugated paperboard boxes. The requirement of paper and board was indicated in clause B. It was agreed that IDL shall provide 3% towards process loss/weightage on paper and board. The conversion charge was agreed at Rs. 5.25 per box without linking with the sizes of the box/weight. It was decided that IDL should arrange for delivery of paper and board for which all expenses wil....
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....able to sales tax under the OST Act. 8. By order dated 29th November, 1997 the STO rejected the above contention of the Petitioner and levied sales tax by treating the above agreement as a works contract. The specific findings in this regard read as under: "The job undertaken by the assessee is a works contract and there is transfer of property in goods which has been agreed by the party towards material component at the rate of Rs. 2.00 per box. The assessee has submitted form IV covering the material component which is not acceptable because (illegible) under works contract are treated as a separate class and a flat rate of 8% has been notified as works contract tax on the schedule for rate of tax. Under the circumstances declaration i....
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....ontract which only involves skill and labour with no transfer of the property in the goods is only a job work and not a works contract. He also referred to the decision of this Court in M/s. Orissa Small Industries Corporation Ltd. v. State of Orissa, (2009) 107 CLT 565. 12. On the other hand, Mr. S. Mishra, learned Additional Standing Counsel for the Opposite Party defended the impugned order and submitted that in the present case there were good reasons that weighed with the Tribunal to conclude that it was a works contract. He submitted that the taxable turnover was determined only after deducting labour and service charges. He pointed out that levy of sales tax was limited to the raw materials utilized in the manufacturing of the cardb....
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....o identity cards for voters as per the orders of the Chief Electoral Officer. The Petitioner received Rs. 12.70 per photo identity card. The amount was shown as gross turnover by the Petitioner for supply of such photo identity cards. The Petitioner there claimed expenditure of Rs. 6,13,12,696/- towards labour and service charges. 14.2 The question that arose for determination in M/s. Orissa Small Industries Corporation Ltd. (supra) was whether the work undertaken by the Petitioner there was a works contract or a job contract? The Assessing Officer allowed 30% of the gross turnover towards labour charges and treated the balance as taxable turnover and levied 4% tax thereon. The first appellate authority rejected the Petitioner's appeal....
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....open market, it would have been exigible to tax, if not otherwise exempted from payment of tax. Hence, supply of photo identity cards to CEO cannot be held as sale. It is a contract for labour and service." 15. By the same yardstick in the present case, it is not possible to agree with the contention of learned counsel for the Department that the arrangement was in fact a works contract and not a job work. Like in the above case, the value of material used in making the corrugated boxes and the cartoons themselves were not to be sold by the Petitioner to anyone in the market. As explained by the Supreme Court in Northern India Caterers (India) Ltd. what has to be examined is the dominant object of the contract in question. The agreement b....