Strict compliance with prescribed tax payment mode defeats sales tax rebate where cheque tender did not satisfy statutory requirements.

Sales tax rebate under section 13(8) of the Orissa Sales Tax Act depended on strict compliance with the statutory mode and timing of payment under section 13(2) and rule 36. The rule prescribed recognised methods of payment, including a crossed cheque drawn in favour of the Treasury Officer on the specified bank branch, and entitlement to the rebate arose only if those requirements were met exactly. Mere tender of a cheque, where the payment did not conform to the prescribed mode, did not satisfy the statutory condition, and subsequent delay by the collecting authority in encashing the cheque did not cure the defect. The rebate was therefore not admissible.

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Issues: Whether rebate under section 13(8) of the Orissa Sales Tax Act, 1947, was admissible when the admitted tax was paid by crossed cheque but the payment did not conform to the prescribed mode under section 13(2) and rule 36 of the Orissa Sales Tax Rules, 1947.

Analysis: Rebate under section 13(8) is an incentive linked to payment of tax on or before the due date. The entitlement is conditioned by compliance with section 13(2), which requires payment in the manner prescribed, and rule 36, which specifies the recognised modes of payment. The rule was construed as laying down distinct modes of payment, including payment through a crossed cheque drawn in favour of the Treasury Officer on the specified bank branch. A taxpayer claiming the rebate must satisfy the statutory requirements strictly, and delay by the collecting authority in encashing the cheque does not alter non-compliance with the prescribed mode.

Conclusion: The rebate was not admissible and the answer to the referred question was against the assessee.

Final Conclusion: Entitlement to sales tax rebate depended upon strict adherence to the statutory mode and time of payment, and mere tender of a cheque not in accordance with the prescribed requirements did not earn the concession.

Ratio Decidendi: Where a fiscal rebate is made contingent upon payment in the prescribed manner by a specified date, strict compliance with the statutory procedure is mandatory and non-compliance defeats the claim to rebate.

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