STATE OF ORISSA Vs. RAMNARAYAN SITARAM

JUDGEMENT

(1.) THIS is a reference under section 24 (1) of the Orissa Sales Tax Act, 1947 at the instance of the Revenue on the following questions of law arising out of the order :

(2.) FROM the statement of the case, it is revealed that the assessee is a partnership firm registered as a dealer under the Central Sales Tax Act read with the Central Sales Tax (Registration and Turnover) Rules. It carries on purchase and sale of jute in the course of inter-State trade and commerce. In the year 1974-75, it despatched jute weighting Q. 2,782. 59 kgs. outside the State which was sold through commission agent. Those sales were not supported by the declaration in form F. Accordingly, deduction was disallowed and tax was demanded on such sale. In respect of another Q. 3,640. 53 kgs. of jute sold in the course of inter-State trade and commerce, no tax was paid by the dealer claiming that purchase tax was paid by it at at the time of purchase under the Orissa Sales Tax Act. The assessing officer also demanded tax on the said sale. Assessment was confirmed in first appeal but in second appeal, the Tribunal held that the proof of sale through commission agent in respect of inter-State trade and commerce can be proved otherwise than furnishing F form, since production of F form is not mandatory. Since the question of non-liability to pay tax in respect of jute sold in the course of inter-State trade and commerce for which purchase tax had been paid was not enquired into, the assessment was set aside with direction to the Sales Tax Officer to find out after enquiry if purchase tax under the Orissa Sales Tax Act was paid on the jute which was sub-sequently sold in the course of inter-State trade and commerce.

(3.) MR . A. B. Misra, the learned Standing Counsel, submitted that in the aforesaid decision, rule 12 (5) and (7) of the Central Sales Tax (Registration and Turnover) Rules have not been considered which would lead to the conclusion that the only mode of proof, that the goods were transferred from one State to the other otherwise than as a result of sale. They read as follows : Rule 12 :