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TMI Blog1991 (11) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... hold that the dealer was not entitled to adjust the tax payable by him on the sale turnover of the liquor even though he had paid tax for the same to his selling dealer in the absence of any provision in rule 36 of the Orissa Sales Tax Rules, 1947 (hereinafter referred to as 'the Rules')?" 2.. The facts leading to the aforesaid reference are that the petitioner was a registered dealer having registration certificate CA-1-B/4 which he had surrendered on February 14, 1972, on the ground of closure of his business. Though the certificate had been surrendered by him, the same had not been cancelled by the registering authority. On November 19, 1976, the said dealer requested the appropriate authority to return the registration certificate wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the petitioner as tax during the period from November 19, 1976 to March 31, 1977, should be adjusted against the demand raised in the assessment on the sale turnover. He, therefore, set aside the assessment and directed the assessing authority to make a fresh assessment in accordance with the observations made in the appellate order. The department carried the matter to the Tribunal in second appeal. The Tribunal came to the conclusion that rule 36 of the Rules not having provided that tax paid by a registered dealer to the selling dealer at the time of purchase of goods can be adjusted against the sales tax payable by him, there is an implicit bar for such adjustment and, therefore, the appellate order was not in accordance with law. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich shall specify the class or classes of goods in which the dealer carries on business. Admittedly the petitioner had a registration certificate as stated earlier and on February 14, 1972, he had surrendered the same but the appropriate authority had not cancelled that registration. Therefore, it remained alive. When the dealer started his business in liquor and liquor became a taxable item with effect from May 1, 1976, the petitioner made an application for amendment of his registration certificate by inclusion of country liquor in the same. This application was made on November 19, 1976, the registration certificate was amended on April 8, 1977 and "D" forms were issued on April 27, 1977. There was no problem subsequent to April 27, 197 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stage rule 36 of the Rules may be looked into which is quoted hereinbelow in extenso: "36. Payment of tax to be made before furnishing return.-Before furnishing to the Sales Tax Officer or Assistant Sales Tax Officer a return or a revised return in form IV or a return in form IV-A for any return period, the dealer shall pay into the Government Treasury or by postal money order to the Sales Tax Officer or Assistant Sales Tax Officer, as the case may be, or through a crossed cheque or crossed bank draft drawn in favour of the Sales Tax Officer or Assistant Sales Tax Officer, as the case may be, on the branch of the State Bank of India or the branch of any nationalised bank of that place where the Government Treasury is situated the amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods which he holds on the date of his registration and for this purpose he shall obtain and attach to the return a certificate from the Sales Tax Officer to the effect that the said stock of goods were purchased not before 12 months of the date of registration and specified amount of tax on such goods has actually been paid by the dealer at the time of effecting purchase thereof. 6.. In view of the aforesaid provisions in the Rules, the dealer was entitled to adjustment in respect of the stock he had on November 19, 1976, the date on which he is deemed to have been registered in respect of the "country liquor" in question. The learned Standing Counsel for the Sales Tax Department fairly concedes the aforesaid position. In the premises, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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