RAM LAL OIL MILL Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE Orissa Sales Tax Tribunal (hereinafter referred to as, "the Tribunal") has referred the following question of law to this court for its opinion under section 24(1) of the Orissa Sales Tax Act, 1947 (hereinafter referred to as, "the OST Act") :

(2.) BEING aggrieved by the said order, second appeal was carried to the Tribunal, whereupon the learned Tribunal upheld the view expressed by the first appellate authority observing that the transaction of purchase made by the Indian Export Houses are penultimate purchase. This leaves the purchases made by the dealer to be exigible to tax in view of the provisions of sub -section (3) of section 5 of the CST Act. The purchases made by the petitioner - assessee cannot be deemed to be the transaction in course of export. Hence, the present sales tax revision.

(3.) MR . Dalei appearing for the Revenue submitted that purchase of groundnut by the petitioner is not the penultimate purchase preceding to the purchase occasioning export of those goods to foreign buyers. During the relevant time groundnut was liable to tax on purchase turnover and the liability to pay tax arose at the time the purchase of groundnut was effected by the petitioner. Since the purchases of groundnut effected by the petitioner were not covered under sub -section (3) of section 5 of the CST Act, the petitioner is liable to pay tax on purchase turnover of groundnut. At this juncture, it is necessary to refer to the provisions contained in section 5(3) of the CST Act. Section 5(3) runs as follows :