MAHABIR RICE MILL Vs. STATE OF ORISSA

JUDGEMENT

(1.) S . J. C. No. 125 of 1976 is a reference made by the Additional Sales Tax Tribunal under section 24 (1) of the Orissa Sales Tax Act (hereinafter referred to as the "act") referring the following two questions for opinion of the Court :

(2.) THE assessee is a registered dealer. It dealt in several articles and was also acting as the purchase-cum-milling agent of the Food Corporation of India during 1972-73. The assessing officer on scrutiny of the accounts found that the assessee had supplied 228 quintals of rice to the Corporation after packing them in gunny bags. The assessee had been paid at the rate of Rs. 3. 25 per quintal on account of gunny bags. He, therefore, held that the assessee was liable to sales tax on a turnover of Rs. 741 on account of sale of gunnies. The assessing officer further took note of the report of the Inspector of the Corporation on physical verification that there was a shortfall in the stock of superfine rice as also paddy. The assessing officer thereupon confronted the assessee's agent and did not accept the explanation offered by him. He recorded the following finding :

(3.) THE State preferred second appeal before the Tribunal and the Tribunal vacated the appellate order and restored the original order subject to certain modifications.