Case Law Details
Larsen & Toubro Ltd. Vs State of Orissa (Orissa High Court)
as far as the present case is concerned, merely because the component parts were brought from different places outside Orissa and assembled in Orissa, it cannot be said that it was an intra-State sale and that a colourable device was deployed to avoid paying sales tax under the OST Act. This is contrary to the facts. The documents placed on record clearly show that components either manufactured in the Petitioner’s own facilities outside Orissa or brought from outside Orissa were transported to Orissa for erection, testing and commissioning of the 100 TPD Rotary Kiln.
There was no occasion for the Tribunal to have gone into a lengthy discussion whether it amounted to a works contract when the focus ought to have been on whether it was an intra-State sale as contended by the State. The goods were indeed supplied in course of inter-State rate, and received by TRL in Orissa. The movement of the goods originated from outside the State. This was not an intra-Sate sale by any stretch of imagination.
Consequently, the Court is unable to agree with the conclusion reached by the authorities at all levels, i.e., STO, ACST and the Tribunal and accordingly all their orders in this regard are hereby set aside. Question No.1 is answered in the negative by holding that the Full Bench of the Tribunal erred in treating the transactions as intra-State sales despite those transactions having been exigible under Section 6(2) of the CST Act.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
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