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1992 (7) TMI 324 - HC - VAT and Sales Tax
Issues:
Interpretation of provisions of the Orissa Sales Tax Act, 1947 regarding deduction from gross turnover for computation of taxable turnover based on form I-A declarations. Analysis: The High Court of Orissa was moved by the Revenue under section 24(2) of the Orissa Sales Tax Act, 1947 to direct the Orissa Sales Tax Tribunal to state a case regarding the entitlement of a selling dealer to deduction from gross turnover based on form I-A declarations. The initial question posed by the Revenue was reframed by the Court for clarity. The case involved M/s. Joharimal Gajanand, a wholesaler, claiming deduction for sales to another dealer supported by form I-A declarations for the assessment year 1980-81. The assessing officer disallowed the deduction, but the Tribunal allowed it based on previous court decisions. The Revenue contended that the previous court decisions cited by the Tribunal were not applicable to the current case, emphasizing the specific provisions of serial 26-A. The Court noted that the case revolved around the claim of deduction under serial 26-A, which required specific conditions to be met for entitlement to exemption and deduction. These conditions included the sale to a registered dealer with a manufacturing unit certified by the Director of Industries, among others. The assessing officer and the Assistant Commissioner of Sales Tax had imposed a condition that the purchasing dealer must be authorized to purchase the article based on their registration certificate to qualify for the benefit. However, the Court clarified that such a condition was not a requirement under the relevant provisions. The Tribunal's decision to remand the matter for verification of forms submitted by the assessee was deemed appropriate by the Court. Ultimately, the Court answered the reframed question in favor of the assessee, concluding that the Tribunal was justified in its decision. The judgment was delivered by Judges Pasayat A. and Patnaik D.M., with Judge Patnaik concurring with the decision.
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