BHARAT SABAIGRASS LTD Vs. COLLECTOR OF COMMERCIAL TAXES

JUDGEMENT

(1.) This is an application under Section 24, Sub-section (2), Clause (b) of the Orissa Sales Tax Act, 1947, asking us to direct the Commissioner, Northern Division, Sambalpur, to state a case.

(2.) The petitioners are a Limited Company, incorporated under the Indian Companies Act. 1913, having their Head Office at Calcutta. The Firm carries on business in Bamboos and Sabaigrass and supplies the above articles to Orient Paper Mills, Brajarajnagar, Titagar Paper Mills and other Bengal Paper Mills. The Firm, inspite of carrying on business for a long time, did not take steps to get itself registered under Section 9 of Orissa Sales Tax Act. Thereupon, the Sales Tax Officer issued notice under Section 12, clause (5) of the Act in response to grass Ltd. vs. The Collector of Commercial Taxes (29.07.1952 - ORIHC) Page 2 of 6 which the Firm denied liability to pay the tax on the ground that the sales had taken place outside the State of Orissa and, as such, no tax was payable in Orissa. The Sales Tax Officer, Sambalpur, by his order dated 16-12-49, assessed the petitioners to pay a tax of Rs. 3215/10/-.

(3.) The Sales Tax Officer's order of assessment solely relied upon the letter of the Collector of Commercial Taxes, Orissa, No. 3264 C.T./328 C. T. of 48, dated the 22nd September, 1948. There being a reference to the letter of the Collector of Commercial Taxes in the body of the order itself, we allowed the production of the said letter and, in order to understand the contents of the said letter, we allowed also the production of the letter written to the Collector by the Asst. Manager of the petitioners, the letter being dated 20th September, 1948. The letter of the Collector runs thus;