STATE OF ORISSA Vs. BHAGABATI TIMBER

JUDGEMENT

(1.) THE Member, Sales Tax Tribunal, has stated this case and referred the following question for opinion of the court :

(2.) IN Bhanja Bhandar's case [1976] 37 STC 169 registration was under section 9 of the Act. In a case of that type, the liability accrues from the date when under section 4 of the Act the dealer becomes liable to pay sales tax on his turnover. The position under section 9-A of the Act would be very different. Here, there is no liability with reference to section 4 of the Act and before the dealer becomes statutorily liable to pay tax, with a view to deriving advantages provided under the statute he makes an application for voluntary registration. In such a case, if the liability is made to run from the date of the application, certainly the dealer would have prejudice instead of deriving any advantage. We are, therefore, inclined to take the view that the ratio of the decision in Bhanja Bhandar's case [1976] 37 STC 169 would not apply to a case of this type and the appropriate way to fix liability is from the date when the certificate of registration is received by the dealer. Our answer, therefore, in the instant case is that liability would commence from 12th May, 1972, and not earlier. No costs. Reference answered accordingly.