Check-post tax credit prevents double taxation on the same consignment transactions and bars added turnover suppression

Tax collected from the transporter at the check post under Rule 94 had to be credited in the dealer's assessment, and the same consignment transactions could not be taxed again in the dealer's hands on an allegation of suppression. Double taxation on the same transaction was impermissible on these facts, so the enhancement of taxable turnover made by the assessing authority could not stand. The transactions were therefore not liable to be treated as suppressed merely because tax had already been realised at the check post.

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Issues: Whether tax realised from the transporter at the check post under Rule 94 of the Orissa Sales Tax Rules could again be levied on the dealer on the footing of suppression for the same consignment transactions.

Analysis: Tax had already been paid by the transporter at the check post in respect of the consignment notes under Rule 94 of the Orissa Sales Tax Rules. That payment was required to be given credit in the dealer's assessment. The same transaction could not be subjected to sales tax twice, once in the hands of the transporter and again in the hands of the dealer. On that basis, the enhancement of taxable turnover made by the assessing authority could not stand.

Conclusion: The issue is answered in favour of the petitioner-assessee. The same transactions could not be treated as suppression by the dealer or taxed twice over.

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