M/S. KALINGA FOOTWEAR Vs. STATE OF ORISSA

JUDGEMENT

(1.) Challenge has been made to the order dated 08.03.2013 passed by the learned Odisha Sales Tax Tribunal (in short 'the Tribunal'), Cuttack in Second Appeal No. 221(VAT) of 2011-12. FACTS

(2.) The factual matrix leading to the case of the petitioner is that the petitioner is a Proprietary Unit engaged in the business of Footwear and duly registered under the Value Added Tax Act, 2004 (hereinafter called OVAT Act) being assigned with the TIN No. 21111204678. For the period from 1.4.2005 to 15.10.2009 the learned Sales Tax Officer made audit assessment under section 42 of the OVAT Act. The learned Assessing Officer found excess stock worth Rs. 3,52,00.28 and accordingly raised tax turnover by raising the same. The learned Assessing Officer directed the petitioner to pay Rs. 1,42,831.15 under 12.5% taxable goods and Rs. 7,81,717.16 under 4% taxable goods as excess amount. Thus, the dealer was to pay Rs. 14,513.47 towards tax and Rs. 29,269.94 towards penalty. The total due including tax penalty comes to Rs. 43,540.41. Besides the amount of Rs. 1,11,424.00 claimed by the dealer towards ITC is disallowed which is added to the above due.

(3.) Against the order of the learned Assessing Officer the petitioner preferred appeal before the learned Joint Commissioner of Sales Tax. The First Appellate Authority observed that the learned assessing Officer committed error as the audit report does not reflect any stock discrepancy. He further held that the order of assessment has been passed without documentary evidence adduced for which, it cannot be sustainable in the eye of law. So he found the order of assessment was wrong. He observed that in there no evidence on record to establish the order of assessment. Since the order of assessment is wrong without being confronted the same with the dealer, he set aside the order by allowing the appeal.