9911796707
TMI Blog1987 (11) TMI 354X X X X Extracts X X X X X X X X Extracts X X X X ..... to attract the second proviso to section 5(2)(A)(a)(ii) of the Orissa Sales Tax Act, or not? This question directly came up for consideration before this Court in three writ petitions, namely, O.J.C. Nos. 518, 519 and 973 of 1979 (Konark Steel Industries v. Sales Tax Officer [1988] 69 STC 187) and a Bench of this Court consisting of Honourable the Chief justice and our learned brother justice K.P. Mohapatra, decided the same by judgment dated 24th of July, 1987 and held that in spite of the conversion of the materials purchased by the petitioners from the selling dealers, the various commodities manufactured by them in their rolling mills although became by name different commercial commodities, they being specifically enumerated and mentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es that the decision in Konark Steel Industries case [1988] 69 STC 202 (Orissa) is not correct is that the earlier Division Bench did not consider the decision of the Supreme Court in the case of Devi Dass Gopal Krishnan v. State of Punjab [1967] 20 STC 430 and misapplied the decision of the Supreme Court in the case of State of Madhya Bharat (now the State of Madhya Pradesh) v. Hiralal [1966] 17 STC 313. But on consideration of the arguments advanced, we do not find any force in the aforesaid contention. 5.. Before examining the several case-laws on the point, it would be profitable to note the scheme of the Act. Section 5(1) of the Orissa Sales Tax Act provides that the tax payable by a dealer under the Act shall be levied on his taxabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utilises the same for any other purpose, then the price of the goods so purchased shall be included in the taxable turnover of the purchasing dealer. Interpretation of this proviso is involved in the present case and the court is required to find out what is the true meaning of the expression "but are utilised by him for any other purpose". The plain meaning of the second proviso, as it stands, is that the goods purchased by a registered dealer for resale in Orissa by giving a declaration must be resold in Orissa and should not be utilised for any other purpose by the purchasing dealer. There is no indication in the second proviso to restrict the manner of resale. Applying the rule of construction of giving literal meaning to a statute, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . This contention was repelled by the Supreme Court by holding that when scrap is made into rolled steel or rods, there is a vital change in the process of manufacture and a different commodity is produced. During the process, the scrap iron loses its identity and becomes a new marketable commodity and the process is certainly one of manufacture. The emphasis, therefore, in the aforesaid case was to 'find out whether there had been a process of manufacture by converting the scrap into rolled steel. We are unable to find out as to how the aforesaid decision applies in interpreting the second proviso to section 5(2)(A)(a)(ii). As we have stated earlier, the second proviso can only be attracted where a dealer purchases the goods by giving a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
