BASUDEB HOTA Vs. STATE OF ORISSA

JUDGEMENT

(1.) THESE three applications under Article 226 of the Constitution are directed against the orders of the Collector of Sales Tax assessing the petitioners to each of the applications to sales tax on the ground that their turn-over escaped assessment and had been under-assessed. As these three applications involve a common question of law, they are heard together and are disposed of by this judgment.

(2.) THE common question argued before us with regard to these three applications is whether the said re-assessment can be made after 36 months of the original assessment. In O. J. C. No. 289-of 1956, the petitioner is a dealer in cocoanuts at salchigopal in Puri district and is a registered dealer under the Orissa Sales Tax act, his registration number being 279. For the quarters ending 31-12-50 to 30-951, 31-3-52 to 30-9-52 and 31-3-53 the assessing officer assessed the dealer and disallowed the deductions claimed by him under Section 5 (2) (a) (ii) of the Orissa sales Tax Act. But the appellate authority allowed them as claimed by the dealer in pursuance of the orders of the Board of Revenue in the case of Khemchand Chandanmal of balangir on the ground that the deduction was legal till the amendment of the provisions of the Orissa Sales Tax Act on 26-11-51. In view of a subsequent decision of this Court in the case of Hindusthan Cellulose and Paper Mills Ltd. v. Collector of Sales Tax and the State, AIR 1957 Orissa 232 (A), the Collector of sales Tax verified the records of this case under Rule 54 of the Orissa Sales Tax rules and coming to the conclusion that the appellate Orders were incorrect, issued a notice to the dealer and revised the appellate orders on 23-11-55 and ordered that the taxable turnovers allowed to be deducted by the Assistant collector should be raised and fresh demand notices should be served on the dealer accordingly.

(3.) IN O. J. C. No. 296 of 1956 the petitioner is a dealer under the Orissa Sales Tax act and was assessed on his taxable turnover for the quarters ending 30-6-51, 309-51 and 31-12-51. Out of the total claims made by the dealer on account of sales oi cocoanuts outside the state Rs. 7627-11-6. Rs. 34788-4-3 and Rs. 30731-9-0 were disallowed by the Sales Tax Officer, Puri, on assessment for the three quarters respectively on the ground that the dealer having purchased the goods of the value noted above in the respective quarters free of tax on the strength of his registration certificate from other registered dealers utilised otherwise than resale in Orissa. But on appeal by the dealer against the orders of assessment disallowing the claims in full, the Assistant Collector of Sales Tax, Puri, held that the dealer was entitled to claim deductions towards the value of goods purchased free of tax from other registered dealers prior to 26-11-51 and sold outside the State and allowed further deductions of Rs. 7627-11-6, Rs. 34788-4-3 and Rs. 25737-1-0 for the said three quarters, being of. the view that prior to the passing of the Orissa Sales tax (Amendment) Act, 1951, on 26-11-51, re-sale for the purpose of Section 5 (2) (a) (ii) will also include a re-sale outside the State. But the Collector of Commercial Taxes, Orissa, after the decision of tbis Court above referred to, holding) that the resale. , for the purpose of Section 5 (2) (a) (ii) meant re-sale in Orissa even prior to 26-11-51> revised the assessment on 28-2-56 under Rule 54 of the Orissa Sales Tax Rules, 1947 after giving an' opportunity to the petitioner of being heard and assessed him on the said sums of rs. 7627-11-6, Rs. 34788-4-3 and Rs. 30569-8-0 for the three quarters,