STATE OF ORISSA Vs. JOHARIMAL GAJANANDA

JUDGEMENT

(1.) THESE are four references made by the Member, Sales Tax Tribunal, Orissa, under section 24(1) of the Orissa Sales Tax Act at the instance of the Commissioner of Sales Tax. The following question has been referred for opinion of the court :

(2.) THE assessee is a registered dealer under the Orissa Sales Tax Act (hereinafter referred to as the "Act"). For the quarters ending 30th June, 1961 to 31st March, 1962, assessments were completed under section 12(8) of the Act and additional tax together with penalty under that sub-section were demanded from the assessee. The assessing officer was of the view that certain purchases of cereals made free of tax on the strength of the certificate of registration for resale in Orissa were converted into dal and, therefore, the declarations were violated and the assessee became liable under the proviso to section 5(2)(A)(a)(ii) of the Act. The purchase price of those goods so utilised was added to the taxable turnover of the assessee. The assessee had also purchased certain other goods on the basis of declarations furnished by him for resale in Orissa, but subsequently those were sold in the course of inter-State trade. The purchase price of those articles was also added on the same basis to its taxable turnover.

(3.) THE learned standing counsel concedes that the dispute based upon conversion of cereals into dal has become final. Similarly he concedes that in regard to other items excepting biri dal, it is difficult, in the absence of clear evidence, to say that there is any contravention. In these circumstances, the only aspect surviving for examination is whether there has been any contravention of the declarations furnished by the assessee in regard to biri dal purchased from registered dealers on the basis of declarations. Section 5(2)(A) making provision for determination of taxable turnover as far as relevant reads thus :