ENGINEERS CORPORATION Vs. STATE OF ORISSA

JUDGEMENT

(1.) THESE are two references made under Section 24(1) of the Orissa Sales Tax Act (hereinafter referred to as 'the Act') at the instance of the Assessee and the following questions have been referred for opinion of the Court by the Member, Sales Tax Tribunal.

(2.) THE periods of assessment are 1968 -69 and 1969 -70. Assessee is a registered dealer under the Act and carries on business in iron and steel goods as also steel furnitures. The Assessee used to purchase iron and steel goods from M/s. Agro and Small Industries Corporation Limited at Cuttack and used to sell and give delivery of the sold goods within the State to the representatives of buyers located outside the State. For the year 1968 -69, Assessee filed its return and paid the admitted tax. The Assessing Officer found that the Assessee had paid tax at 3 per cent on the sale of G.P. sheets and G.C.I. sheets, while the rate of tax was 5 per cent. Accordingly, he demanded additional tax. For the next year, the Assessing Officer found the discrepancy in the tax rate as in the first year. He further found that the Assessee had purchased goods on the basis of furnishing declarations that the purchased goods would be re -sold in Orissa but it had contravened the condition in the declarations and had sold the goods outside the State and bad collected Central Sales Tax. Accordingly, the Sales Tax Officer raised a demand by invoking the proviso to Section 5(2)(A)(a)(ii) of the Act.

(3.) TWO appeals were carried to the Tribunal. The Tribunal noticed the points indicated but ultimately came to hold that the remand directed by the Assistant Commissioner for a fresh assessment after thorough scrutiny was justified. He accordingly dismissed the appeals.