1990 (7) TMI 349

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....nfirmed. In second appeal, the Tribunal found that the dealer was selling the goods to his manufacturing unit. From that unit, instead of obtaining declaration in form IV by mistake, he obtained declaration in form XXXIV, although in his manufacturing account he has posted the value of the papers and also in the sale account effecting sale to the manufacturing unit. Finding that this was a mistake, the Tribunal was of the opinion that the defect was neither pointed out to the dealer nor any opportunity was extended to him to rectify the same. Being satisfied that the dealer has actually utilised the paper in his manufacturing unit and paid tax thereon, the Tribunal was of the opinion that opportunity should be given to the dealer to produce....

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....ection 5(2)(A)(a)(ii) of the Act since the dealer gave declaration that he would resell the goods in Orissa but transferred the same to its manufacturing unit for conversion to exercise books and for printing books. The Tribunal has not applied its judicial mind to the real controversy though raised. Accordingly, a question of law arises out of the order. It is"Whether the dealer by transfer of paper, purchased free of tax to resell in Orissa has contravened section 5(2)(A)(a)(ii) of the Act, to the manufacturing unit for manufacture of exercise books and printing books on the facts and circumstances of the case?" There may be contravention if the goods are not resold in Orissa. Sale involves two parties. Manufacturing unit of a dealer i....