State Of Orissa And Another vs M/S Asiatic Gases Ltd

The Supreme Court held that the consideration received for over-retention of gas cylinders constitutes 'sale price' under Section 2(h) of the Orissa Sales Tax Act, 1947, as there was a transfer of the right to use the goods. The Court clarified that the cylinders are integral to the sale of medical oxygen and industrial gases, and thus the charges for over-retention are part of the sale price. The judgment of the Orissa High Court was overturned, affirming the Department's position that such charges are includible in the sale price.