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2008 (4) TMI 686 - ORISSA HIGH COURTOVAT tax demanded - Penalty imposed - Held that:- The goods in question having come from outside the State of Orissa and the documents establish the fact that the entire consignment also left Orissa, the "presumption of sale," as contemplated under sub-section (10) of section 74 cannot and does not arise. Therefore, looking at the issue of levy of tax under the OVAT Act, there exists no statutory basis for justifying the same. Therefore, in our considered opinion, not only was the demand of "penalty" invalid for the reasons as noted hereinabove, the demand for OVAT and entry tax is also without any statutory basis and, therefore, unlawful. Accordingly, the writ application is allowed. The amount of OVAT deposited, is directed to be refunded and the bank guarantee of ₹ 25,00,000 issued in favour of the Revenue may also be similarly released in favour of the petitioners within a period of 4 (four) weeks from the date of this judgment. Imposition of penalty has already been quashed.
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