Sales tax suspension note was only an administrative instruction, not a statutory exemption, and validations upheld the assessments.

The second press note suspending levy of sales tax on inter-State transactions involving non-resident dealers was not a statutory exemption order under section 7 of the Orissa Sales Tax Act, 1947. It was treated as an administrative instruction reflecting the then understanding after Bengal Immunity, not as language conferring exemption, and no exemption was legally required once the constitutional position had been settled. The Sales Tax Laws Validation Act, 1956 validated the levy and collection for the relevant period, thereby removing the basis of challenge. The assessments were therefore not without jurisdiction.

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Issues: Whether the second press note issued by the State Government, suspending levy of sales tax on inter-State transactions involving non-resident dealers, operated as an of exemption under section 7 of the Orissa Sales Tax Act, 1947, so as to invalidate the assessments made after the Sales Tax Laws Validation Act, 1956.

Analysis: The suspension of levy after the decision in Bengal Immunity did not amount to an exemption order under section 7. No exemption was legally necessary once the constitutional position had been settled by the Supreme Court, and the press note did not use the language of exemption. Its tenor showed only an administrative instruction reflecting the then understanding of the effect of the decision in Bengal Immunity. The Validation Act subsequently validated the levy and collection of tax on such transactions for the relevant period, removing the foundation of the challenge to the assessments.

Conclusion: The second press note was not a statutory exemption order under section 7 and did not deprive the assessing authorities of jurisdiction; the challenge to the assessments failed.

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