1961 (3) TMI 80 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of the proviso to section 5(2)(a)(ii) of the Orissa Sales Tax Act, 1947 in relation to the application of purchase-values to the taxable turnover of an assessee for specific quarters in 1951.
Jurisdiction and powers of the Tribunal in the absence of a cross-objection filed by the State Government in an appeal under sub-section (3) of section 23 of the Act.

Analysis:
The case involved a reference under section 24 of the Orissa Sales Tax Act, 1947, concerning the application of the proviso to section 5(2)(a)(ii) of the Act to the assessment of a dealer-assessee for quarters in 1951. The dealer-assessee had purchased taxable commodities in Orissa but exported and sold them outside the state, collecting sales tax from outside purchasers. The Sales Tax Officer added the purchase-values to the taxable turnover, directing the payment of total collected sales tax. The Assistant Collector, following precedent, excluded these values for the period before November 1951 but included them from October 1951. The Tribunal held the exclusion illegal but did not grant relief to the State due to the absence of a cross-objection by the State Government.

The Tribunal's powers and jurisdiction were a focal point in the judgment. The Tribunal, constituted under the Orissa Sales Tax (Amendment) Act, 1957, was empowered to exercise judicial powers as enumerated in section 23(2)(a) of the Act. The Amending Act of 1958 clarified the Tribunal's powers, granting it the authority to confirm, reduce, enhance, or annul assessments, similar to the appellate authority. The absence of a cross-objection by the State Government did not render the Tribunal powerless to decide the matter conclusively. The Tribunal's jurisdiction extended to correcting errors or mistakes even without a cross-objection, ensuring a full adjudication of disputes between parties.

The judgment emphasized the distinction between the Tribunal's powers under the Sales Tax Act and those under the Code of Civil Procedure. While the Code provides general powers to appellate courts, the Act grants broader authority to the Tribunal in tax matters. Rule 52 of the Orissa Sales Tax Rules clarified that in the absence of a cross-objection, the Tribunal must dispose of the appeal on its merits. The Tribunal's discretion to grant relief in such cases was affirmed, ensuring a comprehensive resolution of disputes.

In conclusion, the Court answered the reference question in the negative, acknowledging the Tribunal's authority to address the matter in accordance with the law. The judgment highlighted the Tribunal's expansive powers in tax appeals and the importance of ensuring a complete adjudication of disputes, even in the absence of a cross-objection. The reference was answered in the negative, with no order for costs.

*R.K. DAS, J.-I agree.*

*Reference answered in the negative.*