MODI INDS. LTD. Vs. STATE OF ORISSA

JUDGEMENT

(1.) Leave granted.

(2.) The appellant manufactures desiccated coconut and coconut in powder form from raw coconuts purchased by it. An assessment was made in respect of Assessment Year 1986-87 seeking to impose sales tax on the desiccated coconut powder sold by the appellant. The Assessing Officer found that the appellant had not paid any tax on the coconut purchased for manufacturing purposes and that, therefore, it was liable to pay tax on the finished products under Section 12 of the Orissa Sales Tax Act, 1947 (hereinafter referred to as "the Act"). The appellant's appeal filed before the Department was rejected. The further appeal to the Tribunal was also dismissed. The Tribunal referred the following question under Section 24(2) of the Act to the High Court for its opinion:

(3.) The High Court came to the conclusion that the desiccated coconut was not covered under Sl. No. 14 of Notification No. 12528-CTA-62/82/F dated 22-3-1982 and accordingly, answered the reference against the assessee and in favour of the Revenue.