CHHATRIYA TRADING CO Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE petitioners by the writ petition have challenged the order of assessment passed by the Sales Tax Officer, Kalahandi Circle (O. P. No. 3), in annexure-2 disallowing adjustment of taxes paid by the petitioners as purchase tax at places other than check-gates.

(2.) THE assessment for the year 1976-77 was completed under section 12 (4) of the Orissa Sales Tax Act by order dated 22nd July 1977 (annexure-1 ). A sum of Rs. 10,961. 75 paid by the dealer in shandies, for which he had also produced receipts granted by the Sales Tax Officers which were held to be valid, was adjusted and demand was raised after allowing adjustment. Subsequently on the basis of a fraud report, the matter was reopened and notice under section 12 (8) of the Act was issued to the dealer and out of the amount mentioned above, payments made to different Sales Tax Officers in the local markets and places of interception to the extent of Rs. 10,001. 75 were disallowed. A further sum of Rs. 960 paid by the dealer-petitioner to the Sales Tax Officer in-charge of Brahaminigaon Check-gate was also disallowed as it had failed to furnish the required certificate issued by the aforesaid Sales Tax Officer.

(3.) TO answer the question, the third proviso to rule 36 of the Orissa Sales Tax Rules may be usefully noticed :