EXECUTIVE ENGINEER Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE Sales Tax Officer, Kalahandi Circle was of the view that the materials, supplied by the Stores and Mechanical Division, Irrigation Wing, Upper Indravati Irrigation Project to the contractors attracted levy of tax under the Orissa Sales Tax Act, 1947 (hereinafter referred to as, "the Act" ). Accordingly, the following demands were raised : 1991-92. . . Rs. 2,44,717 1992-93. . . Rs. 16,67,090 1993-94. . . Rs. 15,25,083 1994-95. . . Rs. 16,54,426 The assessments were framed under section 12 (5) of the Act.

(2.) DURING pendency of the petitioner's appeals before the Assistant Commissioner of Sales Tax, Balangir Range, Balangir, prayer for stay of realisation of the extra demands raised for the assessment years 1991-92, 1992-93, 1993-94 and 1994-95 was made before the Commissioner of Sales Tax, Orissa and the appellate authority granted conditional stay.

(3.) MR . S. P. Mohanty, learned counsel appearing for the petitioner, submitted that the assessing officer has proceeded on erroneous basis of levy tax, as there was no element of sale involved in the supply of materials to the contractor, and in any even tax having been paid at the time of purchase, there was no scope for levying tax again. It is further submitted that when one wing of the Government is subjected to levy of tax, it would not proper to ask for deposit of any amount during pendency of appeals. Mr. S. C. Lal, learned counsel for the Revenue, submitted that whether the transaction attracted levy of sales tax would be gone into by the appellate authority, but considering the nature of dispute, the direction for payment of about 50 per cent of extra demand cannot be said to be arbitrary.