Amended sales tax proviso cannot apply before its operative date, and the same sale cannot face dual assessment.

An amended sales tax proviso could not be applied to sales completed before the prescribed declaration form became operative on 26 April 1978, so the State assessment was valid only for later sales. The same sale could not be subjected to both Central Sales Tax and Orissa Sales Tax for the same period; once the transactions were exigible under the State Act after the operative date, the overlapping Central assessment could not stand. The assessments were set aside and the matter was remitted for fresh assessment distinguishing sales before and after 26 April 1978.

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Issues: (i) Whether the amended proviso to section 5(2)(A)(a)(ii) of the Orissa Sales Tax Act could be applied to tax sales effected before the prescribed amended declaration form came into force. (ii) Whether the same transaction of sale could be subjected to assessment under both the Central Sales Tax Act and the Orissa Sales Tax Act.

Issue (i): Whether the amended proviso to section 5(2)(A)(a)(ii) of the Orissa Sales Tax Act could be applied to tax sales effected before the prescribed amended declaration form came into force.

Analysis: The liability under the amended provision depended upon the existence of the prescribed declaration form and the use of the purchased goods in a manner attracting the proviso. Since the amended declaration form came into force only on 26 April 1978, sales made before that date could not be treated as a contravention of the amended requirement. The assessment could therefore operate only in respect of sales made after the date on which the amended form became effective.

Conclusion: The Orissa Sales Tax assessment was sustainable only for sales effected after 26 April 1978 and not for earlier sales.

Issue (ii): Whether the same transaction of sale could be subjected to assessment under both the Central Sales Tax Act and the Orissa Sales Tax Act.

Analysis: A single transaction could not be split so as to attract both State sales tax and Central sales tax for the same period. Once the sales were found exigible under the State Act after 26 April 1978, the parallel Central sales tax assessment for that period could not stand. The dealer's registration position also negatived the basis adopted for the Central assessment, and the order was liable to be set aside.

Conclusion: The Central Sales Tax assessment could not be sustained for the overlapping period.

Final Conclusion: The assessments were set aside and the matter was remitted for fresh assessment in accordance with the above distinction between sales before and after 26 April 1978.

Ratio Decidendi: An amended taxing proviso cannot be applied to transactions completed before the operative date of the amended declaration requirement, and the same sale cannot be assessed twice under both State and Central sales tax laws for the same period.

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