TaxTMI 
TaxTMI 
2022 (7) TMI 762
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....12 passed by the Orissa Sales Tax Tribunal (Tribunal) allowing the State's Appeal S.A. Nos.302, 303 and 304 of 2008-09 thereby reversing an order dated 22nd December, 2007 of the Assistant Commissioner of Sales Tax (ACST), Puri allowing the Assessee's appeal against the demand raised by the Sales Tax Officer (STO) Puri Circle, Puri for the years 1997-1998 to 2000-01 respectively. 3. While admitting these revision petitions on 17th April, 2013, the following questions of law were framed for consideration by this Court: "a. Whether on the facts and in the circumstances of the case, the Sales Tax Tribunal committed error of law and fact particularly when it has held that the assessing authority had mechanically issued the notice un....
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....the proceeding under Section 12(8) was made for favour of information". 6. The State then filed the appeals before the Tribunal. The Tribunal in the impugned order agreed with the ACST that "the orders of assessment have been passed in hurry and communicated to the dealer respondent at a belated stage nearly after 1 and ½ years which has rightly been observed by the learned ACST." Further it was noted by the Tribunal that the STO "has also not mentioned the points of objection raised by the AG audit and just mechanically reopened the case under Section 12(8) of the Act for the year 1997-98 to 2000-01 with demand of taxes whereas the dealer respondent eligible to enjoy tax benefits both on purchase of raw materials and on the sale ....
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....n addition to the tax assessed under this Sub-section, a sum equal to one and a half times of the said tax so assessed." 10. This has to be read with Rule 23 of the Orissa Sales Tax Rules, 1947 (OST Rules) which read as under: "23. Calling for return when turnover has escaped assessments or has been under assessed-(1) If for any reason the turnover of sales or the turnover of purchases of a dealer has escaped assessment or has been under assessed or has not been assessed due to the tax having been compounded when composition is not permissible under the Act and these rules and it is proposed to assess it, the Commissioner shall serve on the dealer a notice in Form VI calling upon him to furnish a return in Form IV within one cal....
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.... does not make much of difference. It was also noticed that an earlier Division Bench of this Court in Bindlish Chemical and Pharmaceutical Works v. Commissioner of Sales Tax, Orissa (1993) 89 STC 102 had not noticed the above decision of the Supreme Court in Uttareswari Rice Mills (supra). In Indure Limited (supra), this Court also noticed the subsequent decision of Division Bench of this Court in State of Orissa v. Ugratara Bhojanaya (1993) 91 STC 76 ORI which explained the requirement of Section 12(8) of the OST Act in consonance with the decision of the Supreme Court in Uttareswari Rice Mills (supra). 13. In The Indure Limited (supra) the Division Bench of this Court proceeded to hold as under: "(a) Here no basis has been di....
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....on 23.9.98. But the Sales Tax Officer recorded an order for issuing the notice under Section 12(8) of O.S.T. Act only on 24.10.98. So the notice was issued mechanically even before the order for issuing the notice was actually passed. This is not permissible in law." 14. Again in pagraph-18 of the Indure Limited (supra), it was explained as under: "18. The importance of this doctrine lies in the fact that if a statutory functionary is vested with a power to act, it is that statutory authority alone who will form the necessary objective opinion for exercising its power. In doing so, it may take into consideration whatever is relevant. As in the instant case audit objection may be a relevant consideration. Taking that objection in....