UTKAL TRANSFORMER REPAIRING CENTRE Vs. STATE OF ORISSA

JUDGEMENT

(1.) PETITIONERS pray for a direction to the Sales Tax Officer, Ganjam I Circle, Berhampur to issue form I-B in terms of the provisions of the Orissa Sales Tax Act, 1947 (in short, "the Act"), and the Orissa Sales Tax Rules, 1947 (in short, "the Rules") to avail concession under item No. 26-D of the Schedule of tax-free goods, as per Notification No. 20206/cta/14/76-F, dated April 23, 1976 as amended from time to time. Item No. 26-D was inserted by Notification No. 5389-C. T. A.-36/86pt.-F, dated February 13, 1987 with effect from April 1, 1986. The Sales Tax Officer was of the view that the petitioners intended to utilise the declaration forms, not for the purpose of purchasing materials for manufacturing which is sine qua non for the concession, but for repairs, and therefore, forms were not to be issued. The view was endorsed by the Additional Commissioner of Sales Tax by his order dated April 11, 1994 (annexure 5 ).

(2.) MR . Pal, learned counsel appearing for the petitioners, submitted that the position in law has been settled by this Court in Anurag Steel Industries v. State of Orissa [1993] 90 STC 359, where it was observed that at the stage of issuing form I-B the Sales Tax Officer is not required to make a detailed analysis of the factual aspects, which is to be done at the time of assessment, and therefore, the action of the authorities in declining to issue the form cannot be maintained. According to Mr. Lal, learned counsel for the Revenue, manufacturing involves coming into existence of a finished product for which raw materials are used. He places reliance on a decision of the apex Court in Commissioner of Sales Tax, Orissa v. Jagannath Cotton Company [1995] 99 STC 83. The Sales Tax Officer is not precluded from going into the question whether the materials in respect of which form I-B is intended to be obtained, and used have any nexus with the process of manufacturing.

(3.) IN view of the detailed reasons, indicated in Anurag Steel Industries case [1993] 90 STC 359 (Orissa), we direct the Sales Tax Officer, Ganjam I Circle, Berhampur (opposite party No. 3) to issue form I-B to the petitioner as prayed for by it forthwith. It would be appropriate if the assessments are done forthwith, so that the likelihood of the mischief, if any, as conceived by Mr. Lal gets obliterated. The writ application is allowed. No costs.