STATE OF ORISSA vs M/S. ASIATIC GASES LTD.

The Supreme Court ruled that the amount collected for over-retention of gas cylinders by the manufacturer constitutes part of the 'sale price' under Section 2(h) of the Orissa Sales Tax Act, 1947. The Court held that there was a transfer of the right to use the cylinders, as defined under Section 2(g)(iv) of the Act, and that the cylinders are integral to the sale of medical oxygen and industrial gases. Consequently, the judgment of the Orissa High Court was overturned, and the appeal by the Department was allowed.