JUDGMENT

A. K. GANGULY, C.J. — This Sales Tax Revision has been filed by the assessee challenging the order dated 19.8.2002 passed by the Full Bench of the Orissa Sales Tax Tribunal, Cut¬tack (hereinafter referred to “said Tribunal”). By the said judgment, the Tribunal dismissed the petitioner’s appeal and confirmed the order passed by the Assistant Commissioner of Sales Tax, Koraput Range, Jeypore. The Sales Tax Revision was admitted on various questions formulated at pages 22-23 of the Revision Petition, but at the time of argument only the following ques¬tions were pressed.

(I) Whether under the facts and circumstances of the case the plant and machineries having suffered Orissa Sales Tax at the time of purchase inside the State of Orissa, the lease rental received on leasing out those plant and machineries can be taxed ?

(II) Whether under the facts and circumstances of the case the transfer of property in goods and the transfer of right to use the goods are two distinctly separate taxable events once as sale and secondly as deemed sale in the face of the legislative intent of single point taxation as provided u/s 8 of the Orissa Sales Tax Act ?

(III) Whether under the facts and circumstances of the case the imposition of penalty by the Sales Tax Officer and confirmed by the Assistant Commissioner and Sales Tax Tribunal is correct law ?

2. The material facts of the case are that the petitioner, a public limited company incorporated under the Companies Act, has its registered office at 72, St. Mark’s Road, Bangalore and branch office at Plot No. 6, Arunodaya Market, Link road, Cut¬tack-12. The petitioner carries on business in Banking and Leas¬ing of diverse equipments and is registered within the jurisdic¬tion of the Sales Tax Officer, Cuttack I Central Circle, Cuttack having registration certificate No. CUIC 1932 which appears from Annexure-3 to the paper book.

3. On or about 29th March, 1995, the petitioner entered into a lease agreement with JK Corp Ltd. at New Delhi for lease of equipments described in the Schedule of the lease deed. Those equipments were purchased by the petitioner at the request of the lessee and leased out to the said JK Corp Ltd. The petitioner purchased those machineries, namely, coal-fired high efficiency boiler along with auxiliary from JK Corp Ltd. on payment of 1st point tax at the rate of 16%. Thereafter those plant and machineries were again leased to JK Corp Ltd (hereinafter called “lessee”) on as is where is basis and the said lessee was paying the lease rental for leasing of the equipments. The said lease rental was paid to the petitioner at the rate of Re.1/- per thousand per month from the 1st month to 24th month of the lease agreement and thereafter at the rate of 15.85 % per thousand per month which is payable from the 25th month to 84th month. On such transaction the Sales Tax Officer, Koraput II Circle, Rayagada by his order dated 16.2.1998 assessed the petitioner under Section 12(5) of the Orissa Sales Tax (hereinafter called “OST Act”) for the quarters ending 6/97 and 9/97 and raised a demand of Rs.8,07,420/-, surcharge of Rs.80,742/-. Over and above the same penalty of Rs.8,07,420/- was imposed on the ground of non-regis¬tration of the petitioner under the jurisdiction of the Sales Tax Officer, Koraput II Circle, Jeypore.

4. Being aggrieved by the said order of assessment, the petitioner filed first appeal before the Assistant Commissioner of Sales Tax, Koraput Range, Koraput. The said appeal was num¬bered as AA (KOII) 2-3/1998-99. The Assistant Commissioner dis¬posed of the said appeal by his order dated 27.7.1999 confirming the assessment and dismissing the appeal of the petitioner.

5. Being aggrieved by the first appellate order the peti¬tioner filed second appeal before the Orissa Sales Tax Tribunal which was numbered as S.A. No.2774 of 1999-2000. The said appeal was disposed of by the Tribunal by its order dated 19.8.2002 and the order of the Assistant Commissioner was confirme