STATE OF ORISSA Vs. BASUDEV DAS

JUDGEMENT

(1.) THIS is an application of the State of Orissa under section 24(2)(b) of the Orissa Sales Tax Act for a direction to the Sales Tax Tribunal to state a case and refer the following questions for opinion of the court :

(2.) THE assessee is a registered dealer and one Mangulu Sahu and Co., a registered dealer carrying on business at Berhampur, functions as its commission agent. During the year 1971-72, in respect of a sum of Rs. 17,571,54, deduction from the gross turnover was claimed for fixation of the taxable turnover of the assessee on the plea that it was a sale to a registered dealer. Rule 27 of the Orissa Sales Tax Rules provides that a dealer who wishes to deduct from his gross turnover the amount of sale on the ground that he is entitled to make such deduction under item (ii) of sub-clause (a) of clause (A) of sub-section (2) of section 5 of the Act shall on demand, produce a copy of the relevant cash receipt or bill according as the sale is a cash sale or a sale on credit and a declaration in form XXXIV duly filled in and signed by the purchasing dealer or by such responsible person as may be authorised in writing in this behalf by the purchasing dealer. The Tribunal found that there was a formal declaration as provided in form XXXIV, but there was no sale bill and in lieu thereof a sale patti from the authorised agent was forthcoming. Looking at the details contained in the sale patti and what would ordinarily appear in a bill, the Tribunal came to hold that there was compliance of rule 27(2) of the Rules and accordingly allowed the deduction of the turnover of Rs. 17,571.54 for determining the assessee's taxable turnover.