SINGAL TRADING CO Vs. STATE OF ORISSA

JUDGEMENT

(1.) THIS is a reference under section 24(1) of the Orissa Sales Tax Act (in short "the Act") at the instance of the assessee, a partnership firm. The following question of law has been referred by the Member, Sales Tax Tribunal, Orissa, for a decision of this Court :

(2.) AS revealed from the statement of the case by the Tribunal, the assessee is a dealer registered under the Act. It claimed deduction of Rs. 2,26,781.77 as sale to other registered dealers under section 5(2)(A)(a)(ii) of the Act in respect of the year 1977-78. The claim of the dealer was not accepted by the assessing officer since the relevant declarations of the purchasing dealer in statutory form No. XXXIV in support of its claim, were not produced before the assessing officer. Having failed both in the first appeal and second appeal, the assessee prayed for a reference which was allowed.

(3.) THE next contention of Mr. Agarwala, is that purchase by a registered dealer and sale by it to a registered dealer constitute a series and levy of tax at each point in the series would violate section 8. In support of his contention, Mr. Agarwala relied upon the decision of this Court reported in [1987] 67 STC 193; (1987) 1 SLR 297 (Chhatriya Trading Co. v. State of Orissa), I am not able to appreciate how this decision is of any assistant to Mr. Agarwala. In this decision, the dealer paid tax on the commodities to different Sales Tax Officers and produced receipts. In the aforesaid facts, it was observed :