TMI Blog1972 (8) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... purchased mung, chana, biri and peas by giving declaration as required under the Act that he would resell such goods in the State of Orissa and had thus been exempted from payment of sales tax. Subsequently, he converted some mung and biri to dal. Similarly, he converted chana and peas to besan. To the extent the assessee converted the goods purchased on the basis of declarations into either dal or besan the assessing officer took action under the proviso to section 5(2)(A)(a)(ii) of the Act and raised demand. The assessee disputed the demand in appeal. From the appellate order it transpires that similar demands had been raised against the assessee for four quarters at a time being quarters ending 30th June, 1963, 30th September, 1963, 31s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re has been a violation in the declaration of the assessee that the goods purchased by him for resale in Orissa have really been so resold. A single point taxation system has been adopted under the Orissa Sales Tax Act. The point of taxability is open to be fixed under section 8 of the Act. Ordinarily, that point is postponed until in a series of sales the goods ultimately passes to a consumer or to an unregistered dealer. The method of obtaining a declaration as referred to above and postponing the point of taxability is the method adopted under the Act to give effect to the single point of taxation. If the assessee, who has given the declaration and has become entitled to deduction in respect of the goods covered by the declaration from h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aving converted the goods into something different from what it had been at the time of the assessee's purchase upon furnishing of the declarations. The learned counsel for both sides have referred to us a series of cases of different High Courts and of the Supreme Court in support of their respective stands. These cases, however, do not throw any direct light on the point. Particular provisions in different State laws of sales tax, Rules made under the Central Excise Act or other statutory orders led to disputes which came to be resolved in these decisions. In some of these decisions what was decided was whether there was any manufacturing process in converting one goods to another. In some other decisions, whether a particular commodity w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e present case for determination is as to whether sale of mung dal and biri dal can be taken to be sale of mung and biri respectively, and sale of peas besan and chana besan can be taken to be sale of peas and chana respectively. One has ultimately to take a common sense view of the matter. The terms as understood in the commercial sense and with reference to their use must be kept in view in order that a correct conclusion may be reached. Would a man going to the market to buy biri or mung purchase dal of that commodity and, similarly, would a man going to the market to buy chana or peas be satisfied if besan of that commodity is offered? Dal or broken mung and biri may often form a good substitute for whole mung or whole biri and one may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eding chana or peas would not be prepared to accept its besan in its place. When the assessee purchases chana or peas with the undertaking that he would resell them in Orissa, but converts the same into its besan and sells, there is really a violation of the condition in the declaration giving rise to the tax liability under the proviso. 10.. Our answer to the question, therefore, shall be that there is no violation of the declaration contemplated under section 5(2)(A)(a)(ii) of the Act by sale of biri and mung in the shape of dal, but there is such violation when peas and chana are converted into besan and sold as such. We direct both parties to bear their costs of this reference. B.K. RAY, J.-I agree. Reference answered accordingly. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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