HINDUSTAN STEEL LTD. vs STATE OF ORISSA

The Supreme Court held that the appellant's supply of building materials to contractors constituted a 'sale' under Section 2(g) of the Orissa Sales Tax Act, 1947. The Court clarified that while penalties under Sections 9(1) and 25(1)(a) may be imposed for failure to register as a dealer, such penalties should only apply in cases of deliberate defiance of the law. In this case, the appellant acted under a genuine belief that it was not a dealer, thus no penalty was warranted. The Court upheld the Tribunal's decision regarding tax liability but set aside the penalty imposed.