Conversion of declared pulses into dal did not breach the sales tax declaration conditions, so the proviso was not triggered.

Conversion of pulses purchased on declaration into dal and sale of the dal did not violate the declaration conditions under the Orissa Sales Tax Act, 1947. The Orissa HC treated the issue as covered by an earlier decision on the same factual and legal question and held that such processing did not amount to a breach attracting the proviso to section 5(2)(A)(a)(ii). The proviso was therefore not triggered, and the legal position was resolved in favour of the dealer and against the Revenue.

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Issues: Whether the proviso to section 5(2)(A)(a)(ii) of the Orissa Sales Tax Act, 1947 was attracted on the facts, where pulses purchased on declaration were converted into dal and sold.

Analysis: The question was treated as covered by an earlier decision on an identical factual and legal issue. The Court accepted that conversion of the purchased pulses into dal did not amount to a violation of the conditions attached to the declaration and therefore did not trigger the proviso to the relevant charging provision.

Conclusion: The proviso was not attracted and the question was answered in favour of the dealer and against the Revenue.

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