1992 (2) TMI 338

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....9. 3.. The petitioner sold graphite ore to the Pioneer Processors, (opposite party No. 7) (hereinafter described as "purchaser"). The purchaser claiming that it was entitled to exemption on purchase of raw materials for a period of five years from the date of certification of its unit by the Director of Industries, Orissa or the Project Manager of the concerned District Industries Centre furnished declarations in form 1-A in respect of the purchases made. Originally, the Sales Tax Officer accepted the declarations issued by the purchasing dealer to be in order, and completed assessment for the assessment years in question. Subsequently, purporting to act on the basis of the audit report submitted by the Accountant-general, Orissa, he reo....

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....--------------------------- 1 2 3 -------------------------------------------------------------------- 26-A. Purchase or sale ofThe exemption shall be allowed (a) raw materials that is to to for a period of five years from say, goods which directly go the date of certification of the into the composition of the unit by the Director of Indus finished products. tries, Orissa or General (b) machinery and spare parts Manager (or Project Manager) thereof actually required of the concerned District for starting and maintainIndustries Centre irrespective ing the unit. of the change in the ownership, if any, provided that the dealer (c) packing materials required or his authorised agent furfor packing the finished nishes a declaratio....

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....ng the declaration."   6. Under section 5(2)(A)(a)(i) the sale of any goods notified from time to time as tax-free under section 6 is deducted from the gross turnover of a selling dealer for the purpose of computation of taxable turnover. In other words, a selling dealer who produces evidence to show that it has sold goods covered by notification issued under section 6 and the conditions and exceptions are complied with, is entitled to a deduction while its taxable turnover is computed. The selling dealer in order to be entitled to the deduction has to produce at the time of assessment the declaration form I-A which it has obtained from the purchasing dealer. In the instant case, there is no dispute that the purchasing dealer had is....