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2008 (1) TMI 835 - HC - VAT and Sales TaxWhether, in the facts and circumstances of the case, the reopening of the assessment under section 12(8) of the Orissa Sales Tax Act, 1947 is justified as no reason has been indicated in the notice issued under the said section and that the reassessment proceeding has not been initiated on change of opinion of the Sales Tax Officer? Whether, in the facts and circumstances of the case, the Sales Tax Tribunal, Orissa, is correct in holding that the subsequent sale effected by the petitioner to the Orissa Power Generation Corporation and the National Thermal Power Corporation is not in course of inter-State sale but intra-State sale and does not qualify for exemption as contemplated in section 6(2) of the Central Sales Tax Act, 1956? Whether, in the facts and circumstances of the case, the assessing officer is not justified to impose penalty under section 12(8) of the Orissa Sales Tax Act? Held that:- The only dispute involved in the case is regarding dealer's claim for exemption under section 6(2) of the CST Act. In the return filed under the OST Act, the dealer claimed deduction of turnover of ₹ 3,96,32,784 on account of subsequent sale as contemplated under sub-section (2) of section 6 of the CST Act.This claim of the dealer having not been accepted in the assessment order passed under the CST Act, the same has been treated as intra-State sale in the reassessment order passed under section 12(8) of the OST Act by the assessing officer and the same has been accepted by the first and second appellate authorities after detailed factual analysis. In the circumstances, imposition of penalty of ₹ 10,00,000 under section 12(8) of the OST Act is not justified. In conclusion, we answer question No. (i) in affirmative in favour of Revenue, question No. (ii) in affirmative in favour of the Revenue and question No. (iii) in affirmative in favour of dealer. The tax revision is allowed to the aforesaid extent.
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