Double taxation of same turnover barred where earlier sales tax assessment had already attained finality.

The Orissa Sales Tax Act, 1947 does not permit the same turnover to be taxed twice. A second assessment under section 12(5) could not validly duplicate turnover already assessed under section 12(4) for the same assessment year, particularly once the earlier assessment had attained finality. Any further assessment, if required, had to be confined to turnover not previously assessed and the assessing authority was expected to verify the earlier assessment records before proceeding. The impugned second assessment was therefore unsustainable to the extent it repeated the already assessed turnover.

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Issues: Whether the second assessment of the same turnover for the same assessment year under section 12(5) of the Orissa Sales Tax Act, 1947 was valid when the turnover had already been assessed under section 12(4) of the Act by another assessing circle.

Analysis: The scheme of the Orissa Sales Tax Act, 1947 and the Orissa Sales Tax Rules, 1947 does not permit the same turnover to be subjected to tax twice. Once the assessment under section 12(4) of the Act for the relevant period had attained finality, it could not be reopened in these proceedings. The proper course was to prevent double taxation by ensuring that any fresh assessment, if otherwise necessary, was confined only to turnover not already assessed and by directing the assessing authority to examine the earlier assessment records before proceeding further.

Conclusion: The impugned second assessment under section 12(5) of the Act was not sustainable to the extent it duplicated the already assessed turnover, and the petitioner succeeded on this issue.

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