Conditional sales tax rebate survives negligible short credits where tax was otherwise paid on time and excess collections were remitted.

A conditional sales tax rebate under section 13(8) is available only when the statutory payment conditions are strictly met, but negligible short credits do not justify forfeiture of the entire concession where the assessee has otherwise paid the tax due within time. The assessee had deposited amounts exceeding the tax actually payable in each quarter, and the excess collections were remitted to the treasury. In those circumstances, and since section 9-B(3) had been declared ultra vires, the assessee was not treated as having defaulted in payment of tax. The rebate was therefore allowable, and complete disallowance of the rebate was not justified on the facts.

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Issues: Whether the assessee was entitled to rebate under section 13(8) of the Orissa Sales Tax Act despite small short credits in deposit, and whether the rebate could be disallowed in its entirety.

Analysis: Rebate under section 13(8) is a conditional concession available only if the tax payable is paid on or before the due date. The conditions for earning the rebate must therefore be strictly satisfied. On the facts, the assessee had, in each quarter, deposited amounts in excess of the tax actually due, and the short credits were negligible. The excess collections had also been paid into the treasury. Since section 9-B(3) had been declared ultra vires, the assessee could not be treated as having defaulted in payment of tax so as to forfeit the rebate. The Tribunal's reasoning that the entire rebate could not be rejected merely because of a negligible short credit was not correct, but the ultimate conclusion allowing the rebate was justified on the facts.

Conclusion: The assessee satisfied the conditions of section 13(8) and was entitled to the rebate; the disallowance of the rebate in its entirety was not justified.

Ratio Decidendi: A statutory rebate that is conditional in nature must be allowed when the essential statutory conditions are fulfilled on the facts, and negligible short credits do not justify forfeiture of the entire rebate where the assessee has otherwise paid the tax due within time.

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