FACT LIMITED Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE petitioner which had entered into an agreement for supply of equipments for the sulphuric acid plant as well as for erection of the same made an application for registration both under the Orissa Sales Tax Act, 1947 and under the Central Sales Tax Act, 1956, in the prescribed forms. In the prescribed form the petitioner had also indicated a list of goods in which it carries on business. Though the appropriate authority on being satisfied that the petitioner is a dealer carrying on business granted a certificate of registration both under the Orissa Sales Tax Act and under the Central Sales Tax Act on August 5, 1985, but so far as the enlistment of goods is concerned merely stated "execution of words contract". On December 7, 1987, the petitioner prayed for an amendment both in respect of the name as well as in respect of the goods to be certified. The appropriate authority granted that amendment on December 20, 1987, with effect from the date of receipt of the application for amendment, i. e. , December 15, 1987. The petitioner assailed the said order in a revision before the Commissioner of Sales Tax and the Commissioner having rejected the same by order dated January 2, 1989, annexed as annexure 3, the petitioner has approached this Court in this writ application.

(2.) MR . B. K. Mohanty, the learned counsel for the petitioner, contends that the petitioner having made an application in the prescribed form for issue of a registration certificate both under the Orissa Act and under the Central Act giving a list of goods required in the course of the business of the petitioner and the appropriate authority on enquiry having business of the petitioner's application is in conformity with the provisions of the Act and the Rules made thereunder and having granted a certificate of registration was not entitled to reject the prayer for enlistment of goods and committed an error by merely stating "execution of works contract". According to Mr. Mohanty, the appropriate authority had failed to exercise his statutory duty because of a confidential circular issued by the Commissioner of Sales Tax and, therefore, the petitioner is entitled to get the list of goods included in the certificate of registration with effect from the date of issue of the original certificate in 1985. Mr. Mohanty further urges that the petitioner having made an application for amendment and the authority having allowed the amendment, the said authority committed an error by not giving effect to the amendment with effect from the original date of issue of certificate of registration and by giving it effect only from the date when the application for amendment is received. The revisional authority also committed an error in confirming the said order of the original authority and, therefore, the impugned order in revision is liable to be set aside and appropriate direction should be issued to incorporate the amended list of goods in the certificate of registration with effect from the date when the original certificate of registration had been issued.

(3.) UNDER the Orissa Sales Tax Act, a dealer who is liable to pay tax under the Act cannot carry on business as a dealer unless he is registered under the Act and possesses a registration certificate. In order to be registered the dealer has to make an application is such manner and to such authority as prescribed and on receipt of such application, the prescribed authority shall register the applicant and grant him a certificate of registration in the prescribed form which shall specify the class or classes of goods in which the dealer carries on business at the time of grant of the certificate, if he is satisfied that the application is in conformity with the provisions of the Act and the Rules made thereunder. The prescribed form for making an application under the Orissa Act for registration under section 9 is form II. In column 6 of the said form, the dealer is required to specify the classes of goods ordinarily purchased by the said dealer intended to be used in the manufacture or processing of goods for sale. Rule 7 of the Orissa Sales Tax Rules (hereinafter referred to as the "state Rules") authorities the Sales Tax Officer to make such enquiry as he may think necessary and if he is satisfied that the particulars contained in the application form for grant of registration certificate are correct and complete and the prescribed fee has been paid, then he shall register the dealer and issue a certificate of registration in form III. Sub-rule (4) of rule 7 provides that if the Sales Tax Officer is not satisfied that the particulars contained in the application are correct and complete or where the security sought for has not been furnished then he shall reject the application for reasons to be recorded in writing. But the proviso to the said sub-rule (4) indicates that before rejecting the application, the applicant will be given an opportunity of hearing. Form III, the certificate, indicates that in column 2 the authority should incorporate the goods which the dealer is entitled to purchase free of tax for resale in Orissa and column 3 indicates that the goods intended by the dealer to be used in manufacture/processing of goods for sale in Orissa are to be mentioned. For a proper appreciation of the point in issue, section 9 (1), (2) and (3) of the Orissa Act and rule 7 of the State Rules are extracted hereinbelow in extenso :