1994 (11) TMI 404

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....er who was found to have incurred liability, would be deferred either to the date of registration under section 9-A of the Orissa Sales Tax Act or date of application for registration in accordance with the provisions under section 9-A(2) of the proviso or the dealer would be assessed from the date when liability was incurred under section 4 of the Act?" 2.. The short facts necessary for answering the question posed may be briefly stated. The dealer was dealing with motor parts and had applied for registration under section 9-A of the Act on January 2, 1981. The registration certificate was issued under section 9 of the Act on August 27, 1981. As it was found that liability of the dealer has accrued under section 4 of the Act with effect f....

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.... aforesaid conclusion, the assessment for the quarter ending March 31, 1981 having been annulled, the department moved the Tribunal for making a reference and having failed in their attempt and this Court on being moved, pursuant to the direction of this Court the question of law has been formulated and statement of case has been filed. 3.. Learned Standing Counsel for the department argued with vehemence that under the Act the liability accrues in case of a dealer whose gross turnover during the year immediately preceding the date of commencement of the Act exceeds the limit provided under sub-section (7) of section 4 and, therefore, the dealer would be liable to pay tax on sales and purchases effected and it cannot await till a registrat....

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....ion (1) does not apply shall be liable to pay tax under this Act on sales and purchases with effect from the month immediately following a period not exceeding 12 months during which his gross turnover exceeded the limit specified in sub-section (7). (3) Every dealer who has become liable to pay tax under this Act shall continue to be so liable until the expiry of three consecutive years during each of which his gross turnover has failed to exceed the limit specified in subsection (7) and such further period after the date of the said expiry as may be prescribed and his liability to pay tax under this Act shall cease on the expiry of the prescribed period: Provided that in calculating the period of three consecutive years, the part of a y....

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....time in this behalf), Rs. 1,00,000; (c) in relation to a dealer engaged in the execution of works contract and in execution thereof supplies goods (whether as goods or in some other forms), Rs. 1,00,000; and (d) in relation to any other dealer not covered by clauses (a), (b) and (c) Rs. 2,00,000. Provided that nothing in this section shall apply in respect of a casual dealer." A plain reading of the aforesaid provisions unequivocally indicates that the transaction of a dealer would be liable for levy of sales tax when the gross turnover exceeds the limit as provided in the said section. The liability to pay tax has got no connection with the registration of a dealer under section 9 and the true meaning of section 9 is that if the dealer....