STATES OF ORISSA vs M/ S. UTKAL DISTRIBUTORS (P) LTD.

The Supreme Court held that under the Orissa Sales Tax Act, 1947, the central sales tax collected by a controlled stock-holder on sales of iron and steel goods does not form part of the 'sale price' or 'taxable turnover'. The Court reasoned that since the price was statutorily fixed and the stock-holder could not charge more, the central sales tax was not part of the price paid by the customer. The decision of the Sales Tax Tribunal was upheld, confirming the disallowance of the deduction for central sales tax by the Sales Tax Officer and the Collector.