1960 (11) TMI 104 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of deductions under section 5(2)(a)(ii) of the Orissa Sales Tax Act for a dealer.
Maintainability of a cross-objection filed by the Commissioner of Sales Tax on behalf of the State.

Analysis:
The judgment by the Orissa High Court, delivered by Justices Das G.C. and Misra G.K., pertains to references under section 24 of the Orissa Sales Tax Act made by the Sales Tax Tribunal based on a dealer's appeal. The dealer, Messrs M.A. Tullock & Company, claimed deductions under section 5(2)(a)(ii) for the second and third quarters of 1951, concerning sales to another registered dealer, S. Lal and Company Ltd. The assessing officer allowed the deductions, which were confirmed on appeal but later denied by the Tribunal. The first issue involved the correctness of allowing these deductions. The Court referred to a previous decision involving similar circumstances and concluded that the deductions were valid as the purchasing dealer intended to resell the goods in Orissa, falling under section 5(2)(a)(ii). Thus, the assessing officer was not wrong in allowing the deductions.

Regarding the second issue of the maintainability of the cross-objection filed by the Commissioner of Sales Tax, the Court relied on a previous judgment in Ramachandra Balaram v. Commissioner of Sales Tax, Orissa. The Court determined that the State had the right to file a cross-objection post an amendment in 1957, granting appeal and cross-appeal rights to both the assessee and the State. Therefore, the Court held that the Tribunal was correct in entertaining the cross-objection. Both questions were answered in the affirmative, and the references were disposed of accordingly, with each party bearing their respective costs. Justice Barman agreed with the judgment, and the reference was answered in the affirmative.