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1960 (9) TMI 61 - SC - VAT and Sales TaxWhether the fish exported to Calcutta was not sold in Orissa? Held that - On the findings given by the assessing authorities, the respondent was not liable to tax for any of the four quarters under the Orissa Sales Tax Act, 1947. Accordingly, the appeal fails of The State of Orissa and the Sales Tax Officer, Puri
Issues:
Assessment of sales tax on fish exported to Calcutta, liability under the Orissa Sales Tax Act, 1947, interpretation of sales location, applicability of second proviso to section 2(g) of the Orissa Sales Tax Act. Analysis: The respondent, a fish dealer, exported fish to Calcutta and was assessed for sales tax by the Sales Tax Officer for four quarters. The Officer assessed the tax based on the turnover of the respondent, considering sales to local and out-of-state dealers. The respondent contended that the fish exported to Calcutta was not sold in Orissa and thus not liable for tax under the Orissa Sales Tax Act, 1947. The appellate authority and the Collector of Commercial Taxes upheld the assessment, leading the respondent to file a writ petition in the High Court. The High Court held that post-Constitution sales were outside Orissa as the fish was delivered in Calcutta for consumption there. For pre-Constitution sales, the High Court relied on a previous case and the Adaptation of Laws Order, 1950, to rule in favor of the respondent, quashing the assessment orders. The State of Orissa and the Sales Tax Officer appealed to the Supreme Court, arguing that a previous judgment should apply to uphold the assessment orders even for the pre-Constitution period. The Supreme Court disagreed with the appellants, noting that the assessing authorities found no sales in Orissa based on the evidence that the fish was purchased in Orissa but sold in Calcutta by the respondent's agents. The Court clarified that liability for tax was based on sales made in Orissa, not on purchases. The respondent's admission of liability for tax from a specific date did not impact the location of sales. Ultimately, the Court held that the respondent was not liable for tax under the Orissa Sales Tax Act, 1947, for any of the four quarters, dismissing the appeal with costs.
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