STATE OF ORISSA Vs. ARUN TRADING COMPANY

JUDGEMENT

(1.) ON an application being filed by the department under section 24 (1) of the Orissa Sales Tax Act, 1947, the Tribunal has referred the following question for opinion of this Court :

(2.) THE short facts are that the dealer deals with oilcake. The books of accounts were examined in an assessment proceeding under rule 12 (5) of the Central Sales Tax (Orissa) Rules, 1957 and it was found that 303 bags of oilcake had been sold in course of inter-State trade and commerce. The dealer did not produce any declaration in forms "c" and "f" in support of the transaction of oilcake. It also did not pay the Central sales tax over the sale turnover of oilcake. The assessing officer rejected the claim of the dealer and levied tax at the rate of 10 per cent. The Assistant Commissioner, in appeal, confirmed the order of assessment. In the second appeal, the Tribunal came to the conclusion that the oilcake being exempt from levy of tax under serial No. 30-D of the list of tax-free goods, the transaction therein cannot be exigible to tax under the Central Sales Tax Act. The Tribunal also negatived the finding of the appellate authority that only under specified circumstances, i. e. , when the, oilcake is sold as feed and fodder the same is tax-free. The Tribunal having allowed the second appeal, the State had made the application under section 24 (1) of the Orissa Sales Tax Act, 1947 and as such the Tribunal has formulated the question for the opinion of this Court.

(3.) UNDER section 8 (2a) of the Central Sales Tax Act, 1956 if sale or purchase of a goods is exempt from tax generally, the same shall not be leviable under the Central Sales Tax Act. The Explanation to sub-section (2a) provides that a sale or purchase of any goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate State if under that law the sale or purchase of such goods is exempt only in specified circumstances or under specified conditions or the tax is levied on the sale or purchase of such goods at specified stages or otherwise than with reference to the turnover of the goods. If the enumeration contained in serial No. 30-D of the list of goods exempted from levy of Orissa sales tax is examined, it is difficult for us to accept the contention of the Revenue that sale or purchase of oilcake is exempt only in certain specified circumstances. Oilcake is essentially used as a cattle feed. What is exempted is sale of feed and fodder for cattle. The words "husk. straw, hay, grass, oilcake" are merely enumerative and illustrative.