KISHORE KUMAR THAKKAR Vs. STATE OF ORISSA

JUDGEMENT

(1.) THIS is an application under section 24 (2) (b) of the Orissa Sales Tax Act, 1947 (hereinafter referred to as "the Act") by a registered dealer under the Act who carries on the business of purchase and sale of salt in Orissa. During the period 1983-84, he sold 20 bags of salt which were packed in gunny bags and 9,495 bags were sold being packed in nylon bags. Since tax was demanded on turnover of such sales, he has approached this Court in this application for legal interpretation of his liability.

(2.) BEING a registered dealer, applicant is liable to pay tax as provided under the Act. Section 5 provides that tax is to be paid by a dealer on his taxable turnover at such rate and subject to such conditions as the State Government from time to time notify. Under section 6 the State Government has been vested with power to exempt from tax sale or purchase of any goods subject to such conditions and exceptions as it may notify.

(3.) THE only contention of learned counsel for the dealer is that the word "sealed" governs both packets and containers. Since gunny bags and nylon bags containing salt are not sealed, salt is not taxable. There is no force in this contention. Serial No. 29 of exempted goods and serial No. 89 of taxable goods when read together clearly indicate that use of the word "sealed" in both serials has the same effect. All goods if not exempted under section 6 are taxable. Only salt except in sealed packets and containers is not taxable. Salt in container is thus taxable. Word "sealed" does not govern the word "container".