1987 (8) TMI 415 - HC - VAT and Sales Tax

Orissa High Court directs re-examination of petitioners' liability under Sales Tax Act

The Orissa High Court disposed of five writ applications challenging the Orissa Sales Tax Act, directing re-examination of petitioners' liability by ... Double taxation in successive sales - exigibility of sales tax - retrospective definition of 'dealer' - validation of retrospective amendment by ordinance - re-determination of tax liability in light of higher court precedentExigibility of sales tax - double taxation in successive sales - re-determination of tax liability in light of higher court precedent - Whether the impugned demand notices are to be re-examined and fresh liability determined in the light of the Supreme Court's decision - HELD THAT: - The High Court, applying the Supreme Court's holding in State of Orissa v. Titaghur Paper Mills Company Limited as cited in the order, observed that where sales of dressed or sized logs have already been assessed to sales tax, taxing an earlier sale in the same chain would amount to levying tax at two points in the same series of sales by successive dealers. The Court did not adjudicate afresh on the validity of explanation II of section 2(c) but directed that the respective Divisional Forest Officers must re-determine the petitioners' liability under the Orissa Sales Tax Act in accordance with the Supreme Court's observations, namely to examine whether any fresh demand is exigible in the petitioners' cases. Pending such re-examination the Court ordered that the existing demand notices shall remain in abeyance. The writ petitions were disposed of on that basis without costs. [Paras 3, 4, 5]Demand notices to be re-examined by the Divisional Forest Officers in accordance with the Supreme Court's observations; all demand notices to remain in abeyance meanwhile; writ petitions disposed of without costs.Final Conclusion: Writ applications disposed of by directing fresh determination of tax liability by the Divisional Forest Officers in light of the Supreme Court's decision; demand notices stayed in abeyance pending re-examination; no order as to costs. The Orissa High Court disposed of a batch of five writ applications challenging the validity of the Orissa Sales Tax Act. They referred to a Supreme Court decision and directed the Divisional Forest Officers to re-examine the liability of the petitioners. The demand notices were put on hold pending re-examination. The writ applications were disposed of without costs.