Judgement

SIKRI, J. : These appeals by special leave are directed against the judgement of the Orissa High Court in a reference made to it under S. 24 (1) of the Orissa Sales Tax Act, 1947. The following questions were referred:

"1. Whether in the facts and circumstances of the case, the Tribunal is right in holding that the Central Sales Tax paid by the opposite party at its purchase point and charged on to its customers does not form a part of the sale-price of the commodity sold so as to be taxable under the Orissa Sales Tax Act, 1947.

2. Whether, in the facts and circumstances, the allowance of the claim of the opposite party for deduction of Central Sales Tax collected from its customers is permissible under the provisions of the Orissa Sales Tax Act and the rules framed thereunder."

2. Before we examine the facts and circumstances of the case, it is convenient to set out the relevant provisions of Orissa Sales Tax Act, 1947 (hereinafter called the Act) as it stood prior to the amendments made in 1958. In the Act, the definitions of the expressions "sale price" and "turnover" in Sections 2 (h) and 2 (i) omitting immaterial portions were as follows:

"2 (h)- sale price means the amo