Additional evidence and sales tax rate disputes were resolved against the assessee under the governing procedural rule and relevant tax entry.

Additional evidence could not be relied on at the second appellate stage unless admitted in accordance with rule 61 of the Orissa Sales Tax Rules, so sale patties produced for the first time in second appeal could not support deletion of the silver bullion sales from taxable turnover. The disputed turnover relating to gold and silver ornaments was to be taxed at the higher rate applicable for the relevant period, because the governing tax entry had already been settled in earlier decisions. The assessee's contentions on both issues failed, and the revenue's assessment position was upheld.

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Issues: (i) Whether the second appellate authority was justified in admitting sale patties as additional evidence and deleting the sale proceeds of silver bullion from the taxable turnover. (ii) Whether the turnover in dispute relating to gold and silver ornaments was taxable at 5 per cent or at 7 per cent for the relevant period.

Issue (i): The admissibility of additional evidence at the second appellate stage was governed by the procedural requirement in rule 61 of the Orissa Sales Tax Rules. Since no step under that rule had been taken, the appellate authority could not rely on the sale patties produced for the first time in second appeal.

Conclusion: The deletion of the sale proceeds of silver bullion from the taxable turnover was not justified.

Issue (ii): The question of the applicable rate of tax had already been settled in earlier decisions. On the relevant legal position for the period in question, the disputed turnover fell to be assessed at the higher rate.

Conclusion: The turnover in dispute was liable to be taxed at 7 per cent, not 5 per cent.

Final Conclusion: Both referred questions were answered against the assessee, and the assessment position adopted by the revenue authorities was upheld.

Ratio Decidendi: Additional evidence cannot be admitted at the second appellate stage except in accordance with the prescribed procedural rule, and the applicable rate of sales tax must be determined by the governing entry for the relevant period.

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