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2022 (4) TMI 647 - ORISSA HIGH COURTLevy of purchase tax - equivalent paddy out of which rice obtained and sold to Project Director, World Food Programme - exemption as per Entry-30HH of List-a of the Schedule of rates under the OST Act - rice which is a notified first post goods - HELD THAT:- The State Government has admittedly issued a Notification under Section 3-B subjecting paddy to 4% purchase tax. Entry 149 of the rate list appended to the OST Act specifies 4% tax on the sales of the rice permitting set off of the purchase tax paid on paddy against such sale. However, in the present case, the sale to the World Food Programme (WFP) Project falls under Entry 30HH of the Tax Free List, and therefore no such exemption would be sought for and made available to the Petitioner. The argument that no purchase tax can be levied on paddy does not impress the Court. There is no complete ban on the imposition of purchase tax. In fact Section 3-B expressly permits levy of purchase tax on certain classes of goods. The view taken by the Tribunal in the present case, which is in favour of the Department and against the Assessee, does not appear to suffer from any illegality - the purchase tax is indeed leviable on the equivalent paddy out of which rice was sold to WFP, which sales may be exempt under Entry 30HH of List-a of the Schedule of rates under the OST Act. Also, even though rice may be a notified first point goods being exempted by a notification under Section 6 of the OST Act, the equivalent paddy would still be exigible to purchase tax at 4%. Whether in the facts and circumstances of the case rice which is a notified first post goods being exempted by notification under Section 6 of the OST Act under Entry- 30HH of List-a whether paddy used as input is subject to levy of purchase tax? - HELD THAT:- The amount involved being in substantial, the Court leaves the question open for consideration in some other appropriate case. The revision petition is disposed of.
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