HIRAKUD AUTOMOBILES Vs. SALES TAX OFFICER ROURKELA

JUDGEMENT

(1.) THE petitioners are sub-dealers in jeeps, pick-ups and trailers of M/s. Mahindra & Mahindra Limited under the Hirakud Motors, Sambalpur, who are the main dealers. The petitioners purchased jeeps and pick-ups for the period 1st April, 1966, to 31st March, 1967, from the Hirakud Motors (opposite party No. 6) without payment of tax, and for the said sum furnished declarations. The petitioners now say that they were not not aware of rule 93-A of the Orissa Sales Tax Rules which came into force on 14th May, 1963, and though the said purchases were not taxable, wrongly tax had been paid. Even the department itself was ignored of the rule and was all through taxing the petitioners without taxing the Hirakud Motors. Subsequently, the department issued notice on 4th August, 1969, to the opposite party No. 6 for reopening the assessment for the year 1966-67 in respect of the identical transactions. On 16th October, 1969, an order of assessment was passed against the opposite party No. 6 for this period under section 12 (8 ). The petitioners, therefore, filed an application for rectification under rule 83 of the Orissa Sales Tax Rules before the Sales Tax Officer, Rourkela Circle, which is still pending. This writ application has been filed for quashing the assessment for the period 1st April, 1966, to 31st March, 1967, with a direction for recomputation with regard to other transactions excluding those in between the Hirakud Motors and the petitioners.

(2.) RULE 93-A runs thus :

(3.) IN the result, the writ application is allowed as indicated above. A writ of certiorari be issued quashing the impugned order and a writ of mandamus be issued directing the opposite party No. 1 to make reassessment and recomputation. In the circumstances, there will be no order as to costs. Application allowed.