1974 (1) TMI 102 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of rebate provision under section 13(8) of the Orissa Sales Tax Act, 1947.

Detailed Analysis:
The Sales Tax Appellate Tribunal referred a question to the Orissa High Court regarding the admissibility of rebate under section 13(8) of the Orissa Sales Tax Act for the years 1967-68 and 1968-69. The dispute arose from the assessing officer rejecting the assessee's claim for rebate, which was later upheld in the first appeal but overturned by the Tribunal, stating the assessee was entitled to the rebate.

The statutory provisions related to rebate were examined, particularly section 13(8) of the Act, which allows a one percent rebate on tax payable if paid by the due date. Rule 36 of the Orissa Sales Tax Rules outlines the methods of tax payment, including payment by crossed cheque drawn in favor of the Treasury Officer on the branch of the State Bank of India where the Government treasury is located.

The court emphasized that adherence to the prescribed procedure for tax payment is crucial to claim the rebate under section 13(8). The timely payment of tax is essential, and the rebate serves as an incentive for taxpayers to fulfill their obligations promptly. The court clarified that the payment method specified in the statute and rules must be followed to qualify for the rebate.

The court rejected the argument that a crossed cheque need not be drawn in favor of the Treasury Officer on the specified bank branch, stating that different payment modes are outlined in the rule to ensure clarity and compliance. The delay in the Sales Tax Officer encashing the cheque was deemed immaterial, and the Tribunal's focus on it was unnecessary.

Ultimately, the court ruled that the assessee did not qualify for the rebate under section 13(8) due to non-compliance with the prescribed payment method. The judgment was delivered by Justice R.N. Misra, with agreement from Justice B.K. Ray.

In conclusion, the court answered the referred question by stating that the rebate under section 13(8) was not admissible in the case. No costs were awarded, and the reference was answered accordingly.