Burden of proof under tax proviso: revenue must prove breach of declaration before taxing paper sales again.

Tax could be levied under the proviso to section 5(2)(A)(a)(ii) of the Orissa Sales Tax Act, 1947 only if the revenue proved that the declaration supporting tax-free purchase of paper had been breached. The assessee's order-book distinguished paper supplied by customers from paper supplied by the press, and the record did not show that paper had been sold otherwise than as paper. Suspicion arising from the billing form was insufficient to establish contravention. The revenue therefore failed to discharge its burden, and the proviso could not be invoked to levy tax again on the value of the paper sold.

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Issues: Whether the revenue established contravention of the proviso to section 5(2)(A)(a)(ii) of the Orissa Sales Tax Act, 1947 so as to levy tax again on the value of paper sold.

Analysis: The assessee maintained a regular order-book showing whether paper was supplied by the customer or by the press, and the entries were found to distinguish the two classes of transactions. The proviso could be invoked only on proof that the declaration given for purchasing paper without tax had been violated. In proceedings under the proviso, the burden lay on the revenue to establish such violation. The record did not contain material sufficient to show that the assessee had not sold paper as paper, and suspicion arising from the form of billing could not discharge the revenue's burden.

Conclusion: The revenue failed to establish any contravention of the proviso to section 5(2)(A)(a)(ii) of the Orissa Sales Tax Act, 1947, and the assessee was not liable to pay tax on the value of the paper sold.

Ratio Decidendi: Where tax is sought to be levied under a proviso premised on breach of a declaration, the revenue must prove the breach and mere suspicion is insufficient to invoke the taxing provision.

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