SHREE DURGA RICE MILL Vs. STATE OF ORISSA

JUDGEMENT

(1.) This matter is taken up by video conferencing mode.

(2.) While admitting this revision petition on 5/2/2007, the following question of law was framed by this Court:

(3.) The background facts are that the Petitioner is a registered dealer under the Orissa Sales Tax Act, 1947 (OST Act). It owns a rice mill and it is carrying on the business of purchasing paddy and converting it into rice. In terms of the Government guidelines, the Petitioner was required to procure paddy at a specified rate and sell a specified percentage thereof to the Food Corporation of India (FCI) as levy rice. In terms of the contract with the FCI, the Petitioner was required to sell the levy rice with its container i.e. gunny bags. The Petitioner accordingly paid sales tax at the rate prescribed under Sec. 5 (1) of the OST Act.