TMI Blog2011 (9) TMI 888X X X X Extracts X X X X X X X X Extracts X X X X ..... at event, the assessing officer shall, issue a show cause, asking the dealer to pay the amount due on the return in forms E22 and E23 as provided under rule 10(5). Thus the notice issued in form E24 and demand notice in form E8 under annexure 3 series are quashed. Liberty is given to the assessing officer to proceed against the petitioner in accordance with law, if he is of the opinion that the tax due on the return as furnished by the petitioner is not paid by it due to wrong/excessive claim of deduction(s) in the return. Appeal allowed. - W.P. (C) No. 7178 of 2011 - - - Dated:- 6-9-2011 - GOPALA GOWDA V. C.J. AND MAHAPATRA B.N. J. M/s. S. N. Sahu, B. Panda, B. B. Sahu and Bijay Panda for the petitioner R.P. Kar, Standing Counsel, for the respondents JUDGMENT Challenge has been made to the notices issued for less payment of tax in form E24 under rule 10(6)(b) as well as demand notice in form E8 under rule 16 of the Orissa Entry Tax Rules, 1999 (for short, the OET Rules ) on the ground that both the notices have been issued directing the petitioner to pay ₹ 13,33,115 along with interest at the rate of two per cent for the period from January 1, 2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llegal deductions from the total value of goods purchased and utilized in execution of the works contract, the assessing officer in exercise of power vested under rule 10(6) (b) of the OET Rules has issued form E24 raising the amount due from the dealer. Consequently, notice of demand issued in form E8 is also valid. On rival contentions of the parties, the only question that arises for consideration by this court is as to whether in exercise of the power vested with the assessing officer under clause (b) of sub-rule (6) of rule 10, the assessing officer can examine the correctness of various deductions claimed in the return to find out the amount of tax due from the assessee unilaterally by applying his own method of calculation. To deal with the above question, it is necessary to know what is contemplated in sub-rule (6) of rule 10, which is reproduced below: (6)(a) Each and every return in relation to any tax period furnished by a dealer shall be subject to manual or system based scrutiny. (b) If, as a result of such scrutiny, the dealer is found to have made payment of tax less than what is payable by him for the tax period, as per the return furnished, the assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn, the assessing authority cannot remain a silent spectator and accept the tax admitted by the dealer in its return. According to Mr. Kar, in that event there will be huge loss to the State exchequer. Therefore, according to Mr. Kar, the phraseology used tax payable by the dealer as per the return furnished connotes the tax which is payable according to the provisions of the statute. We are unable to accept such contention taken by Mr. Kar as in that event in exercising power under clause (b) of sub-rule (6) of rule 10 which does not provide any opportunity of hearing to the dealer, the assessing authority shall raise demands by unilaterally disallowing various claim made in the return. That would be in gross violation of the principles of natural justice. It is pertinent to note here that the apprehension of Mr. Kar has been taken care of by the Legislature in rule 10 itself. It is well-settled legal position that, while interpreting the provisions of the statute, every part of the provisions of the statute has to be given effect and one part cannot be interpreted in a manner inconsistent with another part of the statute that would defeat the object and purpose of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sued by the scheduled bank in favour of the Assistant Commissioner, Sales Tax or Sales Tax Officer of the circle, as the case may be, to fulfil the payment of tax as per the return. Clause (b) of sub-rule (3) of rule 10 provides that where the dealer furnishes a return under sub-rule (1) or (2) without proof of full payment of tax payable for the tax period, a notice in form E21 shall be served upon such dealer for payment of the tax due as per the return furnished and the dealer shall pay the amount of tax defaulted within the time specified in that notice. Rule 10(5)(a) provides, where a dealer fails to make payment of the tax due and interest thereon along with return or revised return furnished for any tax period, a notice in form E22 requiring such dealer to show cause within 14 days from the date of receipt of the notice shall be served upon him. Rule 10(5)(b) provides, where the dealer fails to respond to such notice or explain the default in payment of tax or interest or both to the satisfaction of the authority issuing notice under clause (a) penalty shall be imposed under sub-section (6) of section 7 and the order shall be issued in form E23. Rule 10(5)(c) pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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