In a recent decision the Orissa High Court observed that the transportation charges separately shown is deductible from Goods transport operator(GTO) under Odisha Sales Tax Act.
The petitioner, M/s Saraswati Stone Quarrya registered dealer under the Odisha Sales Tax (OST) Act, 1947, having stone quarry, assailed common order passed by the Odisha Sales Tax Tribunal, Cuttack directed against order of the Assistant Commissioner of Sales Tax, in connection with Assessment framed under Section 12(4) of the Odisha Sales Tax Act, 1947 by the Sales Tax Officer pertaining to the year 2002-03.
The question before the Court was whether onthe facts and in the circumstances of the case, the transportation charges which was shown separately is deductible from the GTO as per section 5(2)(A)(a)(ii) of the Odisha Sales Tax ActAct.
Rudra Prasad Kar, counsel appearing for the petitioner submitted that charges being post sale event, would not form part of “sale price” as defined under Section 2(h) and thereby eligible for deduction in terms of Section 5(2)(A)(a)(iii) of the Odisha Sales Tax Act.
Susanta Kumar Pradhan, Additional Standing Counsel (Commercial Taxes) has conceded to the position of law as laid down by the Court in D.K. Construction and argued that the authorities have correctly decided the issues, which do not require indulgence of this Court.
In State of Odisha v. D.K. Construction, it was held that the treatment of supply of ballast and chips as “minerals” falling within ambit of Entry 117 of the taxable list subject to tax at 4% and deduction of incidental charges incurred from gross turnover have been decided in favour of petitioner in the said reported Judgment of this Court.
The Coram comprising Justices BR Sarangi and MS Raman observed that “This Court, on perusal of record, finds that the factual position obtained in D.K. Construction is identical to the present case and similar questions of law as posed in the present revision petition are decided in favour of the petitioner-assessee and against the revenue and that the revision petition succeeds and, therefore, all the orders were set aside.”
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