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TMI Blog2022 (8) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... ny selling dealer not limited to the immediate selling dealer vis- -vis the Assessee. The purpose of Note (i) was clearly to imply only the person from whom the Assessee purchased the raw materials and not any previous seller. There was no scope for expanding the expression selling dealer to include any selling dealer previous to the involved in a transaction previous to the transaction. Consequently, the Court is not able to agree with the approach of the Tribunal in an interpretation of Note 1. On a collective reading of Clauses (i) and (iii) of Note 2, it is plain that the set off has to be only proportionate to the actual raw material used in production of the finished products of that particular financial year. The approach of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule, 1999 ? (iii) Whether on the facts and in the circumstances of the case, the Sales Tax Tribunal committed error by interfering with the view of the first appellate authority who has confirmed the order passed by the assessing authority on verification and examination of books of account recorded finding that claim of set off of entry tax as made by the opposite party is untenable inasmuch as it could not produce the purchase invoice against the purchase of raw materials? 2. It may be noticed at the outset that when notice was issued to the Opposite Party side, the service of such notice was returned with the endorsement refused . Therefore, the Opposite Party should be taken to have been served. None appears for the Opposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee also claims set off on the basis of straight jacket formula on payment of sales tax on raw materials against the sales tax due on entire sale transaction for the finished goods in that financial year. However, the STO allowed set off only in proportionate to the sales tax paid on raw materials purchased and used in production of finished goods in a particular year against the sales tax due on the sales transaction on finished goods in that particular year. 8. Thirdly, the STO acted on a fraud case report alleging purchase suppression of 9.290 metric ton of coal. Not being satisfied with the Assessee s explanation, the STO enhanced the gross turnover (GTO) and the taxable turnover (TTO) by Rs.1,00,000/- (rupees one lakh) on the basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be adopted, it expanded the meaning of the expression selling dealer to include any selling dealer and not the immediate selling dealer vis- -vis the Assessee. This despite, Note 1 very clearly stating that the tax collected from the Assessee by the selling dealer has to be shown separately on the body of the bill in respect of sale of raw materials and consumables subject to tax on sale turnover directly used in the manufacture of such goods. Note- 2 also talks of set off in the following manner: (i) The amount of set off claimed shall be limited to the Orissa Sales Tax payable on sale of finished products manufactured out of such raw materials and consumables. xx xx xx (iii) In respect of goods exigible to tax on sale ..... X X X X Extracts X X X X X X X X Extracts X X X X
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