TaxTMI 
TaxTMI 
2022 (8) TMI 309
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.... on the facts and in the circumstances of the case, the Tribunal is justified in holding that there was ambiguity in the Finance Department Notification bearing No.14687-CTA-37/2001 (Pt.) F. (SRO No.149/2001) dated 31.03.2001 and required interpretation in favour of the dealerassessee particularly when plain reading of the said notification would lead to understanding that the dealer-manufacturer is entitled to claim set off of tax on purchase of raw materials separately indicated on the body of the bill/invoice ? (ii) Whether on the facts and in the circumstances of the case, the Tribunal acted with material illegality and beyond scope and authority of Rule 19 of the Orissa Entry Tax Rule, 1999 ? (iii) Whether on the facts and i....
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....y its sellers, who in turn purchased the goods from Rourkela Steel Plant (RSP) on payment of 1st point tax and advised the seller (SAIL) to consign the goods directly to the Assessee. In both categories, the Assessee claimed set off for the tax paid on raw materials. 6. The Sales Tax Officer (STO) allowed benefit of the set off only on the transactions of the first point category i.e. the case of direct purchaser from sellers, who collected tax at the first point of sale. In the second category, the benefit was refused on the ground of that the bills issued by the sellers did not reflect the amount of tax "on the body of the bill collected from the Appellant". 7. The Assessee also claims set off on the basis of straight jacket formula on ....
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....ovision does not suggest that raw materials not used in the production of that financial year are not qualified for the purpose of set off. According to the Tribunal, the only meaning emerging from the provision is that set off is to be calculated on the basis of the sales tax paid on purchase of raw materials in a particular financial year against the sales tax due on the entire sales tax transaction of finished goods in a financial year. The Tribunal, however, did not interfere with the enhancement of the GTO and TTO over Rs.1 lakh by rejecting the Assessee's books of account. 11. Although the Tribunal correctly noted that in taxing statutes a strict interpretation has to be adopted, it expanded the meaning of the expression 'selling dea....