1999 (1) TMI 501 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Whether an assessee executing a works contract can request the inclusion of certain items in the certificate of registration under the Orissa Sales Tax Act, 1947 and the Central Sales Tax Act, 1956 for purchasing goods for resale.
2. Whether the assessee is entitled to receive declaration forms XXXIV under the Orissa Sales Tax Act, and forms C and F under the Central Sales Tax Act.

Issue-wise Detailed Analysis:

1. Inclusion of Items in the Certificate of Registration:
The case addresses whether an assessee executing a works contract can request the inclusion of certain items in the certificate of registration issued under the Orissa Sales Tax Act, 1947, and the Central Sales Tax Act, 1956, to purchase goods for resale. The petitioner, a registered dealer under the Act, had their application for registration under the Central Act rejected by the Sales Tax Officer. The petitioner sought to include specific goods/classes of goods in the registration certificate for resale purposes. The Sales Tax Officer denied this request, stating that including these items would allow the petitioner to purchase goods tax-free or at a concessional rate, which would violate the provisions since there would be no resale in the case of works contracts. The revisional authority upheld this decision, emphasizing that the declaration form XXXIV stipulates that goods purchased must be resold in Orissa and subject to tax under the Act.

2. Entitlement to Declaration Forms:
The petitioner also sought the issuance of declaration forms XXXIV under the Orissa Sales Tax Act and forms C and F under the Central Sales Tax Act to avail of tax benefits. The Sales Tax Officer refused to issue these forms, arguing that goods not intended for resale within the scope of section 5(2)(A) but meant for works contracts under section 5(2)(AA) could not be included in the registration certificate. The petitioner contended that as registered dealers, they were entitled to these benefits. The Revenue argued that the concept of "deemed sales" could only be operative if the statute explicitly envisaged it and necessary amendments were made.

Judgment Analysis:
The court examined various provisions of the Orissa Sales Tax Act, 1947, the Central Sales Tax Act, 1956, and relevant case laws. The division bench in the previous case of Enertect Engineering Private Limited v. Sales Tax Officer had concluded that the decision of the apex court in Cooch Behar Contractors' Association v. State of West Bengal applied, rejecting similar prayers. However, the larger bench found that the division bench did not provide a detailed analysis of the statutes and overlooked the self-contained nature of section 6D of the Bengal Finance (Sales Tax) Act, which provided specific guidelines for works contractors.

The court reviewed decisions from various High Courts, including Fact Limited v. State of Orissa, Larson & Toubro Limited v. Commercial Tax Officer, Beekay Engineering Corporation v. State of Bihar, N.J. Devani Builders Pvt. Ltd. v. Sales Tax Officer, and Salvicate (Bangalore) Private Limited v. Sales Tax Officer. These cases supported the view that a dealer executing works contracts could be registered under the Central Sales Tax Act and entitled to declaration forms for purchasing goods at concessional rates.

Conclusion:
The court concluded that the answers to both questions referred to the larger bench were affirmative. An assessee executing a works contract can request the inclusion of certain items in the certificate of registration for purchasing goods for resale and is entitled to receive declaration forms under the respective Acts. The reference was answered accordingly, and the cases were placed before the Division Bench for disposal in terms of the answers given.