STATE OF ORISSA Vs. JANATA MEDICAL STORES

JUDGEMENT

(1.) ON applications by the State of Orissa made under section 24 (2) (b) of the Orissa Sales Tax Act of 1947, this court directed the Tribunal to state a case and refer the following two questions for opinion of the court :

(2.) THE assessee is a medical stores at Puri. The periods of assessment are 1966-67, 1967-68 and 1968-69. While examining the assessee's accounts the Sales Tax Officer found that in respect of the sale turnover of thermometers, lactometers, syringes, measuring glasses and eye-wash glasses as also droppers and certain other alleged plastic articles the assessee had collected and paid tax at 5 per cent. As the assessing officer was of the view that all the named articles except plastic materials came within the meaning of glassware, the sale thereof was taxable at 7 per cent of the price. Similarly, in regard to sale of plastic goods a higher rate of tax exigible. Additional demands raised by the Sales Tax Officer were impugned by the assessee in appeal before the Assistant Commissioner. He, however, agreed with the assessing officer. In second appeal the assessee's contention waived with the Tribunal. The Tribunal stated that under sub-section (1) of section 5 of the Act provision for rate of tax has been made. The general rate is 5 per cent. The first two provisos authorise the State Government to vary the rate of tax by notification. The first proviso reads thus :

(3.) IT is conceded before us by the counsel for the assessee that plastic rubbers and plastic pieces are plastic articles and would, therefore, be directly covered by item No. 7-C of the very notification whereunder the plastic goods are liable to tax at 7 per cent. The concession before us on behalf of the assessee is well-founded. The Tribunal while dealing with this aspect of the matter says :