STATE OF ORISSA Vs. SAHU AND CO

JUDGEMENT

(1.) THE Sales Tax Appellate Tribunal has, at the instance of the State, referred the following question for determination of this court under section 24(1) of the Orissa Sales Tax Act of 1947 (hereinafter referred to as the Act) :

(2.) IT is appropriate that we refer to the statutory provisions dealing with the question of rebate first :

(3.) MR . Mohanty for the assessee has taken the stand that where payment is made by a crossed cheque it need not be in favour of the Treasury Officer and also on a branch of the State Bank of India of that place where the treasury is situated. According to Mr. Mohanty that requirement is with reference to a crossed bank draft. We cannot agree with Mr. Mohanty's construction of rule 36. According to us, different modes have been prescribed in that rule. They are : (1) payment into the Government treasury, (2) payment by postal money order to the Treasury Officer, (3) payment through a crossed cheque drawn in favour of the Treasury Officer on the branch of he State Bank of India of that place where the Government treasury is situated, and (4) payment by crossed bank draft drawn in favour of the Treasury Officer on the branch of the State Bank of India of that place where the Government treasury is situated. To accept the construction of Mr. Mohanty would lead to uncertainty. There would be no indication in the rule as to in whose favour the crossed cheque has to be drawn. As the crossed cheque and the bank draft have referred to the bank, he rule-making authority has put both the clauses together. It would, therefore, follow that the requirements of section 13 and rule 36 put together would be that the tax due must be paid on or before the due date by one of the four modes indicated above. Then only the entitlement under section 13(8) of the Act to rebate would be acquired.