STATE OF ORISSA Vs. VIJOY LAXMI TRADING CO

JUDGEMENT

(1.) THE following question was asked to be referred by this court by order dated 8th July, 1971, at the instance of the assessee under section 24 (2) (b) of the Orissa Sales Tax Act (hereinafter referred to as the Act) :

(2.) LIABILITY for taxation is provided under section 4 of the Act and under sub-section (1) thereof, as the law stood when the assessment came to be made, every dealer whose gross turnover during the year immediately preceding the date of commencement of the Orissa Sales Tax (Amendment) Act, 1958, exceeded Rs. 10,000 became liable to pay tax under the Orissa Act. The liability to pay tax has nothing to do with registration or non-registration. Duty is cast under section 9 of the Act that every dealer who became liable under section 4 to pay tax must get registered and possess a certificate in evidence of registration. Certain benefits are available to a registered dealer under the Act. Penalty is provided if section 9 is violated. Even before liability under section 4 accrues, option is given to a dealer to get registered by making a voluntary application under section 9-A of the Act. Whether a dealer gets registered or not, if liability under section 4 comes upon him he has got to pay tax under the Act. This position has been settled beyond doubt by the Supreme Court in Central Potteries Ltd. v. State of Maharashtra ([1962] 13 S. T. C. 472 (S. C.) ). Venkatarama Aiyar, J. , delivering the judgment of the court analysed the corresponding provisions of the Central Provinces and Berar Sales Tax Act and said :

(3.) THE considerations of equity seem to have weighed with the learned Judges of the Patna High Court in the case referred to by the Additional Tribunal. Equity has no place in administering a taxing statute. We would accordingly hold that the Tribunal was in error in holding that liability to pay tax under the Act would accrue only from the date of grant of certificate of registration in the facts of the case. Our answer, therefore, shall be "the liability to pay tax under section 4 of the Orissa Sales Tax Act accrues as and when the condition laid down in section 4 itself is satisfied and without reference to the date of application for obtaining the certificate of registration or the date when the certificate of registration is granted. " We make no order as to costs of this reference. Reference answered accordingly.