RAMESWARLAL MURALIDHAR Vs. STATE OF ORISSA

JUDGEMENT

(1.) THIS is a reference made under section 24 (2) of the Orissa Sales Tax Act by the Member, Sales Tax Tribunal, stating a case and referring the following question for opinion of the Court :

(2.) THE assessee is a registered dealer under the Orissa Sales Tax Act and carries on business in paper and exercise books. During the period 1970-71, which is relevant for the present purpose, the assessee was working as authorised agent of Titaghur Paper Mills Limited for storage and sale of paper. The Sales Tax Officer, while examining the assessee's accounts, found that the assessee had purchased paper worth Rs. 36,992. 40 from its principal free of tax by furnishing declarations. The assessee, however, did not sell the paper quo paper but converted the same into exercise books and sold them as such. The Sales Tax Officer was of the opinion that the assessee had contravened the declarations and as such the purchase turnover was added for determining the taxable turnover in the hands of the assessee. The Assistant Commissioner affirmed the demand.

(3.) THE assessee's application for stating a case having been rejected, this Court was moved under section 24 (2) of the Act and in terms of the direction given on 22nd August, 1977, this reference has been made. Before us, the counsel for the assessee has not argued for the benefit of the concessional rate. The only question for consideration, therefore, is whether by the process of converting the paper into exercise books, the declaration has been violated and liability under the proviso was attracted.