TaxTMI 
TaxTMI 
2009 (3) TMI 930
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....itioner under section 77(4) of the Orissa Value Added Tax Act, 2004 (for short, "the OVAT Act") on the grounds that the said order is arbitrary and not maintainable in law. The facts of the case in a nutshell are that the petitioner is a dealer registered both under the OVAT Act and the Central Sales Tax Act, 1956 (for short, "the CST Act"). It was assessed under rule 12(4) of the Central Sales Tax (Orissa) Rules, 1957 (for short, "the CST(O) Rules") for the period commencing from April 1, 2005 to July 31, 2007 wherein the total tax demand of Rs. 41,70,825 was raised towards tax, penalty and interest. Against the said demand, the petitioner filed an appeal before the DCST along with a petition for stay of realization of the demande....
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....pril 1, 2005 to July 31, 2007, which is in dispute. At the best, the petitioner may be asked to deposit 20 per cent of tax and interest levied by the assessing officer on the transactions effected during the period from July 6, 2006 to July 31, 2007. Therefore, the impugned order under annexure 3 is liable to be quashed. Mr. R.P. Kar, learned Additional Standing Counsel for the Revenue vehemently argued that on receipt of the letter dated November 31, 2008, by which the petitioner was asked to deposit a sum of Rs. 2,78,055, i.e., 20 per cent of the tax and interest demanded for the period April 1, 2005 to July 31, 2007, the petitioner appeared before the DCST and submitted that the appeal was preferred against the order of assessment passe....
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....purpose of the Act for which no provision is made in these rules or in the Central Sales Tax (Registration and Turnover) Rules, 1957." Rule 22 of the CST (O) Rules makes it amply clear that the provisions of the OVAT Act and the Rules made thereunder shall mutatis mutandis apply in respect of all procedural and other matters incidental to the carrying out of the purpose of the Act for which no provision is made in these rules or in the Central Sales Tax (Registration and Turnover) Rules, 1957 (for short, "the CST (R & T) Rules"). Admittedly, there is no provision in the CST (O) Rules and the CST (R & T) Rules relating to appeal against assessment orders passed under the CST Act read with Rules framed thereunder. Therefore, provisions cont....
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....ecided is a matter of procedure. The rules of procedure are intended to advance justice and not to defeat it. "Procedural law is intended to facilitate and not to obstruct the course of substantive justice". (vide Hoosein Kasam Dada (India) Ltd. v. State of Madhya Pradesh [1953] 4 STC 114 (SC); AIR 1953 SC 221, Garikapati Veeraya v. N. Subbiah Choudhry AIR 1957 SC 540, Ganesh Trading Co. v. Moji Ram AIR 1978 SC 484, Harcharan v. State of Haryana AIR 1983 SC 43 and Shiv Shakti Co-op. Housing Society, Nagpur v. Swaraj Developers AIR 2003 SC 2434). Admittedly, in the case at hand, the petitioner was directed by the DCST to deposit 20 per cent of the tax and interest in dispute raised for the period from April 1, 2005 to July 31, 2007 to ente....