9911796707
TMI Blog1992 (5) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... tries. He, inter alia, carries on business of processing of iron and steel materials, such as plates, sheets, ingots and slabs and manufacturing of steel trunks and suitcases in the aforesaid industrial units. With a view to avail incentives guaranteed under the Industrial Policy Resolution, 1986 of the Government of Orissa (in short, "IPR") he applied to the District Industries Centre (in short, "DIC") for registration in the year 1988. On being satisfied about correctness of the applications, the authorities permitted him to set up the industries and after commencement of the production, the DIC authorities granted permanent registration certificate authorising him to carry on the industrial activity in respect of processing slabs, ingots and plates to the tune of 3,000 metric tons per annum in respect of M/s. Anurag Steel Industries. The commercial production was started on February 15, 1988, in respect of its processing, and on June 10, 1988, for the manufacturing activity. M/s. Prem Industries was engaged in manufacturing of M.S. coil, M.S. plates, ingots, slabs and C.I. scraps by cutting, bending and sizing and started its commercial production with effect from April 4, 198 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffected, the petitioner issued several reminders to issue the forms; but the petitioner's prayer did not yield any result. This Court was moved for a direction to the sales tax authorities to issue the declaration forms. It was brought to the notice of this Court that an enquiry was being conducted, and the question of issue of declaration forms was to be considered after the enquiry. The writ application was withdrawn when the sales tax authorities assured that the forms will be issued. In July, 1991, certain provisions of the Act stood amended and by a new provision, i.e., section 2(ddddd), the definition of "manufacture" was given a broad base, and processing was included in the definition. Further applications were filed before the Sales Tax Officer for issue of forms as well as for amendment of the certificate of registration. Surprisingly, without notice and opportunity the Sales Tax Officer amended the certificate of registration treating the petitioner to be a trader, although no trading is undertaken by the industrial concerns of the petitioner. Such amendment was made with effect from April 1, 1990. The suo motu amendment was challenged before the Commissioner of Sales Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the order of the Commissioner suffers from no infirmity to warrant any interference. The assessments have been assailed in appeal and therefore, there is no scope for interference in the writ application. 4.. We shall first deal with the powers of the Sales Tax Officer while dealing with an application for issue of form IB. At this juncture it is necessary to refer to IPR, 1986. So far as the sales tax is concerned, it is indicated in the said resolution that all new village, cottage and small industries will be exempted from sales tax on purchase of spare parts of machinery, raw materials and packing materials for a period of five years from the date of their commercial production. Products of new small-scale industries will also be exempted from sales tax for a period of five years from the date of their commercial production. By Finance Department notification dated February 13, 1987, published in the Extraordinary Orissa Gazette on February 16, 1987, an amendment was made to the notification of the Government of Orissa in the Finance Department No. 20206-CTA-14/76P, dated the April 23, 1976, in exercise of the powers conferred by section 6 of the Act. The following entr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e entry indicated that the exemption shall be allowed, if the dealer or his authorised agent furnishes a declaration in form IB appended. Subsequently an amendment was made by Notification No. 5598-CTA-17/ 88-F, dated February 12, 1988 (effective with effect from April 1, 1988) whereby the dealer seeking issuance of forms is required to make an application to the concerned Sales Tax Officer. It is stipulated that no second or subsequent supply of forms shall be made unless true account of forms last supplied is furnished. It is accepted that the account as referred to is to be given in form VII-A appended to the Rules. The petitioner's stand is that all requisite information in form VII-A was given, and the authorities having found no defect in the forms submitted, they had no power to adjudicate about the mode of utilisation. Such adjudication, it is submitted, falls within the domain of assessment. 5. It is accepted by the learned counsel for the department that while seeking subsequent supply of declaration forms a true copy of the account certified in respect of the forms last supplied as maintained in form VII-A referred to in clause (v) of rule 27(2) has to be filed and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is only to be noticed to be rejected. A bare look at section 5(2)(A)(a)(ii) and the proviso thereto is sufficient for rejecting the contention. The first proviso clearly indicates that for the purpose of ascertaining the deductions under the said item, the dealer selling the goods shall furnish to the prescribed authority in the prescribed manner, a declaration in the prescribed form obtained from the prescribed authority within the prescribed time or within such further time as that authority may after sufficient cause permit. If the contention of the learned counsel for the department that the forms are to be issued contemporaneously is accepted, then there is no scope for grant of further time on sufficient cause being shown. The purchasing dealer who is authorised to purchase certain goods on the basis of his certificate of registration is not precluded to obtain the declaration forms subsequently from the sales tax authorities and issue it to the selling dealer. Any other interpretation would render the first proviso to section 5(2)(A)(a)(ii) otiose. This Court had occasion to deal with cases where declaration forms were produced subsequently even after disposal of the firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n case was obsessed with the nature of transaction of the petitioner. He held that the benefits were wrongly allowed and there was every justification to get it amended. He did not consider the question whether the petitioner had been afforded opportunity before amendment. Reference to the notice annexed as annexure B to the counter-affidavit would show that the same did not relate to amendment. As indicated above, the Sales Tax Officer wanted to look into the "gambit" of the activities so as to alleviate the complicacy. It was the view of the Sales Tax Officer who issued the notice that the processing activities undertaken by the petitioner have tended to involve considerable degree of controversy and confusion in the context of end-produce resulting therefrom. On the basis of such notice, the Sales Tax Officer was not justified in amending the certificate of registration and therefore, the amendments made and the order of the Additional Commissioner vide annexure 12 maintaining them is interdicted and it is accordingly quashed. 8.. We shall presently deal with the submission of the learned counsel for the department to the effect that the sales tax authorities are bound to prot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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