2000 (9) TMI 1004 - HC - VAT and Sales Tax

Summary

Issues:
1. Rejection of application for registration as a dealer under special circumstances under rule 6A of the Orissa Sales Tax Rules, 1947.

Analysis:
The petitioner, a contractor engaged in white-washing, painting, repairs, and renovation works, sought registration under special circumstances due to difficulties in appearing for assessments in different territorial jurisdictions. The Commissioner rejected the application citing reasons that rule 6A is for small-scale dealers, monitoring works in various areas would be challenging, and registration would burden tax monitoring. However, rule 6A allows registration for dealers without a fixed place of business or operating in different circles. The petitioner, registered in Cuttack I Central Circle, executed works contracts in other circles without a fixed place of business, justifying the need for registration under rule 6A.

The Commissioner's reasons for rejection were found legally untenable. Rule 6A does not limit registration to small-scale dealers, and conditions can be imposed to ensure compliance. Administrative inconvenience can be managed through existing provisions for inspections and tax deductions, making the second reason invalid. The concern about monitoring works contractors throughout the state contradicts the purpose of rule 6A, which aims to facilitate registration for dealers without fixed places of business in various circles.

The Commissioner erred in relying on a previous judgment to reject the application, as the circumstances differed. The court quashed the impugned order and directed the Commissioner to allow the petitioner's application for registration under rule 6A within a month. The writ petition was allowed without costs.

This detailed analysis highlights the legal grounds, interpretation of rules, and reasoning behind the court's decision to quash the Commissioner's order and grant registration under special circumstances as per rule 6A of the Orissa Sales Tax Rules, 1947.