NETRANANDA Vs. COMMISSIONER OF SALES TAX ORISSA

JUDGEMENT

(1.) THE following questions of law have been referred to this Court for opinion, by the Member, Sales Tax Tribunal, Orissa, under section 24(1) of the Orissa Sales Tax Act.

(2.) THE facts found and admitted are as follows : The petitioner was a registered dealer in jute for the period in question (1949-50). He sold jute to two firms, namely Messrs Sinclair Murray and Co. and Messrs Banamali Sahu and Dibakar Sahu (who were also registered dealers) during the said period, but omitted to obtain from them the declaration mentioned in rule 27(2) of the Orissa Sales Tax Rules. Notwithstanding the absence of such declaration he claimed execution from sales tax in respect of these sales. His claim for exemption was disallowed both by the Sales Tax Officer and the Assistant Collector of Sales Tax. The Member, Sales Tax Tribunal, also disallowed his claim for exemption. It was admitted before him that the aforesaid two purchasing dealers bought jute from the petitioner for resale outside Orissa. It was further admitted that on 2nd January, 1950, the Assistant Sales Tax Officer wrote a letter to the petitioner [No. 7(b)] directing him not to collect sales tax in respect of jute sold to Sinclair Murrary and Co. because the latter had become a registered dealer in Orissa since the 12th December, 1949. The petitioner alleged that it was on the strength of this letter of the Assistant Sales Tax Officer that he did not collect sales tax from the purchasing dealer (Messrs Sinclair Murrary and Co.) and that having directed the petitioner not to realise sales tax from the purchasing dealer, it was not open to the department now to ask him to pay sales tax in respect of those transactions.

(3.) QUESTION (b) refers to the ultra vires nature of rule 27(2) but I see nothing ultra vires in the said rule. When the Act has made a provision conferring right of exemption in respect of a particular transaction of sale it is always open to the rule-making authority to make provision for the mode of proof for the purpose of claiming exemption.